Construction services firm Wawasan Dengkil files for ACE Market IPO

• Wawasan Dengkil mainly provides earthworks and civil engineering services. The company is also involved in trading of construction materials, as well as provision of machineries and commercial vehicles for hire.

KUALA LUMPUR (July 10): Wawasan Dengkil Holdings Bhd, a construction services company, filed for an initial public offering (IPO) on the ACE Market to raise funds to buy equipment, and to finance project working capital.

The proposed IPO involves a public issue of 108.03 million new shares, and an offer for sale of 54.01 million existing shares, at a price to be determined later, according to its draft prospectus. All in all, the listing offers investors up to a 30% stake in the company.

On the company's purchase list are five excavators, one mobile crane, and 10 dump trucks, it said. “The purchase of these machineries and commercial vehicles is expected to increase our capacity and flexibility to cater for future demands,” the company noted.

Wawasan Dengkil mainly provides earthworks and civil engineering services. The company is also involved in trading of construction materials, as well as provision of machineries and commercial vehicles for hire.

For the financial year ended June 30, 2024, Wawasan Dengkil made a net profit of RM5.43 million, on the back of revenue of RM94.77 million.

Under the proposed IPO, the public issue comprises 27.01 million shares to the Malaysian public and 10.8 million shares for eligible persons. The company will also set aside 40.51 million shares for bumiputera investors, and another 29.70 million shares to select investors through private placement.

Part of the proceeds raised will go towards financing project working capital requirements for the purchase of diesel and subcontractor costs. “This will enhance our group’s ability to bid for more new projects, ultimately facilitating the expansion of our group's construction portfolio,” it said.

The company will also allocate some of the proceeds towards general working capital, repayment of bank borrowings and office renovation. The rest will go towards defraying listing expenses.

The offer for sale, meanwhile, comprises private placement of 27.01 million existing shares to bumiputera investors, and another 27.01 million to select investors. Proceeds raised from the sale of existing shares will accrue entirely to selling shareholders Lim Soon Yik and his family.

M&A Securities is the IPO’s adviser, sponsor, underwriter and placement agent, while Eco Asia Capital Advisory is the financial adviser.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!