Main Market-bound Azam Jaya Bhd Aims To Raise RM61.5 Mln From IPO

KUALA LUMPUR, Oct 18 (Bernama) – Sabah-based major road infrastructure construction player, Azam Jaya Bhd aims to raise RM61.5 million from its initial public offering (IPO), pursuant to its listing on the Main Market of Bursa Malaysia on Nov 11, 2024.

In a statement today, the company said of the proceeds, RM8.0 million has been allocated to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment as well as technological upgrades.

“In addition, RM28.4 million is allocated for working capital purposes, RM20.0 million is earmarked for repayment of bank borrowings, and RM5.1 million will be used to defray listing expenses,” the group said.

Executive director Datuk Lo Vun Che said the IPO is a pivotal step in its long-term growth strategy, enabling the group to enhance its construction capabilities and capacity to undertake more large-scale projects.

“We aim to further elevate the construction standards in Sabah, introducing innovative techniques and high-quality engineering to meet the growing demands of the region,” he said.

In terms of dividend policy, Azam Jaya targets to distribute at least 30 per cent of its net profit attributable to shareholders.

Lo added that currently, the group is engaged in nine ongoing projects, including four work packages for the Pan Borneo Highway, bringing its total unbilled contract value to RM1.45 billion, providing earnings visibility up to 2028.

He said the group is proud to have contributed to notable road infrastructure developments in Sabah, such as the longest pre-stressed vehicular bridge across Sungai Sitompok and Sabah's first vehicular tunnel at Sepanggar, Kota Kinabalu.

Applications for the public issue are open today and will close at 5 p.m. on October 24, 2024.

Inter-Pacific Securities Sdn Bhd is the principal adviser, sole underwriter and sole placement agent for the IPO exercise.

Azam Jaya, through its subsidiaries, specialised in the construction of large-scale road infrastructure in Sabah, including roads, highways, bridges, flyovers, and tunnels.

-- BERNAMA