Nestcon Starts Strong In ACE Market - - Financial Market Media No. 1 in the World Nestcon Starts Strong In ACE Market Nestcon Starts Strong In ACE Market

June 29, 2021

Nestcon Starts Strong In ACE Market

 Building and infrastructure construction services provider, Nestcon Bhd was first listed on the ACE Bursa Malaysia Market this morning at a price of 30 sen, a premium of two sen from its offer price of 28 sen.

At its opening, the company's counter saw 28.4 million shares change hands.

The company intends to raise RM45.1 million in revenue from the implementation of its initial public offering (IPO).

Its Managing Director, Datuk Ir. Dr. Lim Jee Gin said of the total revenue collected, RM6.0 million would be used to set up an industrial building system (IBS) facility for the company's building division, RM6.6 million for the purchase of machinery and equipment and RM16.5 million for loan repayment. bank.

"Another RM11.0 million will be used for working capital needs, RM1.0 million to upgrade software and systems and the remaining RM4.0 million will be allocated to cover listing expenses," he said.

The listing of the company involved a public issue of 160.96 million new ordinary shares at an issue price of RM0.28 per share, representing 25% of the company's enlarged share capital.

Bernama reported that Nestcon's IPO was oversubscribed 57.13 times.

According to Jee Gin, it will continue to boost its building, civil engineering and infrastructure segments to strengthen its market position as a comprehensive construction company as well as expand its portfolio to include new projects such as renewable energy.

"The addition of new machinery and equipment will also enhance the civil engineering and infrastructure segment as we are currently seeking tenders for larger -scale projects," he said.

At the macro level, he added the company remained optimistic about the construction industry, which was supported by government initiatives and spending related to infrastructure and housing development as well as the acceleration of vaccination efforts which played an important role in the country's economic recovery.

Moving forward, Jee Gin said, Nestcon projects better growth in the coming years, especially in the civil engineering and infrastructure segments which will play a dominant role in the company’s revenue for the next three years.

The company has a strong contract turnover of RM1.9 billion with RM1.2 billion still unbilled.

At the same time, in terms of replenishing its order book, Nestcon has 40 ongoing civil engineering and infrastructure tenders as well as 11 building construction tenders worth around RM2.8 billion.