Hartanah Kenyalang secures approval for ACE Market IPO, aims for June listing

• The approval from Bursa Malaysia comes at a time when “we are ready to take advantage of the vast development opportunities in Malaysia’s construction industry especially in Sarawak”, the construction firm said in a statement.

KUALA LUMPUR (Feb 24): Sarawak-based Hartanah Kenyalang Bhd said it has secured approval for an initial public offering (IPO) and aims to list on the ACE Market by June this year.

The approval from Bursa Malaysia comes at a time when “we are ready to take advantage of the vast development opportunities in Malaysia’s construction industry especially in Sarawak”, the construction firm said in a statement.

“The approval takes us a step closer in our IPO journey to become a public listed entity,” said Hartanah Kenyalang managing director Seah Boon Tiat.

The company is seeking to raise funds for expansion and to finance existing operations, according to its draft prospectus for the proposed IPO filed in November. 

On its shopping list are six new excavators to replace some of its older assets and increase its capacity to take on more jobs, the company said. Hartanah Kenyalang also plans to use some of the proceeds for computer hardware and software to expand into design services.

Hartanah Kenyalang is involved in construction services targeting institutional buildings such as schools and other public buildings, as well as infrastructure focusing on bridges and roads.

Ongoing projects include the construction of the State Archive building in Kuching, facilities for Yayasan International School in Sibu and in Kuching, and Sebauh Bridge in Bintulu as a rescue contractor for the project.

The planned IPO comes at a time of rising federal allocation for Sarawak. Under Budget 2025, the state is expected to receive RM5.9 billion for development, as well as another RM600 million in special grant.

The IPO involves a public issue of 120.9 million new shares and an offer for sale of 77.5 million existing shares, at a price to be determined later. All in all, the listing offers investors up to a 32% stake in the company.

Proceeds from the sale of new shares will also be used to meet the growing project working capital, mainly to pay sub-contractors and suppliers. The company has also set aside some of the funds to repay some of its bank borrowings. The rest will be used to defray listing expenses.

Meanwhile, any money raised from the sale of existing shares will accrue entirely to co-founders Seah and his elder brother Boon Kee, who is also the deputy managing director, as well as to chief operating officer Tony Cheok, strategic investor Peter Chai, and minority shareholder Yeo Kwang Min.

The Seah brothers are trained as civil engineers.

TA Securities is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter.

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