KUALA LUMPUR: Sabah-based major road infrastructure construction player, Azam Jaya Berhad (“Azam Jaya”), has garnered significant interest from investors for its initial public offering (“IPO”), which has been oversubscribed by 23.00 times ahead of its listing on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Azam Jaya, through its subsidiaries (collectively, the “Group”), specialises in the construction of large-scale road infrastructure in Sabah, including roads, highways, bridges, flyovers, and tunnels. With over 30 years of experience in the industry, the Group has a proven track record, having successfully completed over 50 construction projects in the region.
Azam Jaya’s IPO comprises 128.8 million ordinary shares, featuring a public issue of 78.8 million new ordinary shares (“Issue Shares”) at an issue price of RM0.78 per share, representing 15.8% of the enlarged share capital with RM61.5 million expected to be raised. In addition, there is an offer for sale of 50.0 million existing shares (“Offer Shares”), representing 10.0% of the enlarged share capital, by way of private placement to selected investors.
In respect of the 25.0 million Issue Shares allocated to the Malaysian public, Azam Jaya has received a total of 16,014 applicants for 599,942,800 Issue Shares with a value of approximately RM467.96 million, representing an overall oversubscription rate of 23.00 times.
- For the Bumiputera portion, 8,482 applications for 282,907,200 Issue Shares were received, representing an overall oversubscription rate of 21.63 times.
- As for the Malaysian public portion, 7,532 applicants were submitted for 317,035,600 Issue Shares, resulting in an oversubscription rate of 24.36 times.
The 10.0 million Issue Shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the Company have been fully subscribed.
Meanwhile, the 43.8 million Issue Shares and 50.0 million Offer Shares by way of private placement to institutional and selected investors have also been fully placed out.
Notices of allotment will be posted to all successful applicants by 6 November 2024.
Datuk Jessica Lo, Executive Director of Azam Jaya, stated, “We are greatly encouraged by the positive response to our IPO, which affirms the market’s confidence in Azam Jaya’s business strategies. We are well-positioned to seize new opportunities, which will include enhancing our construction capabilities and expanding our capacity for larger-scale projects. This will enable us to reach our goal of elevating construction standards in Sabah by introducing innovative techniques and delivering high-quality engineering solutions to meet the region’s growing demands.”
From the RM61.5 million to be raised from the IPO, the Group has allocated RM8.0 million (13.0%) to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment as well as technological upgrades. In addition, RM28.4 million (46.2%) is allocated for working capital purposes, RM20.0 million (32.5%) is earmarked for repayment of bank borrowings, and RM5.1 million (8.2%) will be used to defray listing expenses.
Azam Jaya is scheduled to be listed on the Main Market of Bursa Securities on Monday, 11 November 2024. Upon listing, Azam Jaya will have a market capitalisation of approximately RM390.0 million based on the issue price of RM0.78 per share and the enlarged share capital of 500.0 million shares.
Inter-Pacific Securities Sdn Bhd is the Principal Adviser, Sole Underwriter and Sole Placement Agent for the IPO exercise.
