Construction services company, Tuju Setia Bhd, which will be listed on the Main Market of Bursa Malaysia on May 19, plans to raise RM56 million from the initial public offering (IPO).
In a statement in conjunction with the launch of its prospectus today, the company said the IPO involved a public issue of 80 million new shares at a price of 70 sen per share, along with an offer to sell 27 million existing shares.
Of the targeted amount, RM32 million will be allocated for the company's capital expenditure to purchase new construction machinery and equipment as well as information modeling system (BIM) software to enhance design and construction activities.
In addition, the company will acquire land and build new storage facilities for the organization as well as better use of machinery and equipment and increase the efficiency of its maintenance work.
Meanwhile, another RM19 million will be allocated for working capital and the remaining RM5 million to cover listing expenses.
Speaking at a virtual briefing today, Tuju Setia Managing Director Wee Eng Kong said the IPO would enhance the company's current core competencies as well as increase its capabilities in building skyscrapers, designing and constructing hospitals and healthcare facilities.
“Tuju Setia's record as the main contractor and developer of choice is formed based on our core values in selecting customers who have a good reputation, have strong technical expertise and achieve quality accreditation. This strong foundation allows Tuju Setia to survive even in the challenging 2020.
"This IPO will drive our further growth as the funds raised will be focused on expanding our core construction efficiencies as well as putting us in the best position to implement new projects from our tender value of around RM4 billion," he said.
Tuju Setia will be the first company to be listed on the Main Market this year.
