Newly listed construction services firm, Tuju Setia Bhd opened at 7.75 sen during this morning's trading session, 10.71% higher than its initial public offering (IPO) price of 70 sen.
The stock, which was the 11th most profitable counter this morning, rose 17.5 sen or 25% to 87.5 sen.
At 10.07am, the counter jumped to 79.5 sen, up 9.5 sen or 13.57%. At that level, the company's market capitalization is RM251.88 million.
The counter was also the fifth most actively traded stock, with 54.57 million shares changing hands.
The firm aims to raise up to RM56 million through an IPO and RM32 million of it will be allocated for capital expenditure that will be used to purchase new construction machinery and equipment as well as ‘Building Information Modeling’ (BIM) software to improve design skills and construction activities.
In addition, the company announced that it will purchase land and build new storage facilities for the organization and use of better machinery and equipment as well as improve the efficiency of maintenance work.
Yesterday, through a notification to Bursa Malaysia, Tuju Setia said its wholly -owned subsidiary, Pembinaan Tuju Setia Sdn Bhd had been awarded a contract worth RM189 million for a multi -storey construction project in Seri Kembangan, Selangor.
The project comprises a 35 -storey block containing 865 units of small offices/home offices (SoHo) as well as a 33 -storey block with 526 units of serviced apartments, facilities and related amenities including multi -storey podium parking.
The contract has a term of 38 months beginning June 1, 2021 and is due to be completed by July 31, 2024.
The company expects the project to contribute positively towards its revenue until the financial year ends 31 December 2024.
