Thursday 22 Feb 2024
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KUALA LUMPUR (April 13): ACE Market-listed Kejuruteraan Asastera Bhd (KAB) has proposed to transfer its listing to the Main Market of Bursa Malaysia, given that it has met the profit track record requirements.

In a filing with the bourse, the engineering group said it believes that a transfer to the Main Market will improve its reputation and prestige, and KAB will gain greater recognition from various stakeholders.

“Additionally, the nature of the group’s business involves demonstrating its financial strength and credibility in order to secure certain projects. Accordingly, completion of the proposed transfer is expected to provide the group with a competitive edge when bidding for contracts,” said KAB.

The group said it has achieved net profit of RM10.4 million for the financial year ended Dec 31, 2019 and an aggregated consolidated net profit of approximately RM25.8 million for the past three financial years, thus meeting the profit test for a Main Market listing.

Under the equity guidelines, the aggregated net profit of a company has to exceed RM20 million for the past three full financial years, and the company has to post a minimum net profit of RM6 million for the latest financial year.

KAB also said its balance sheet is healthy, given that it has no accumulated losses, current assets of RM115.4 million and liabilities of RM57.1 million, representing a current ratio of 2.02 times, and cash and bank balances of RM35.2 million.

The proposed transfer will be subject to the approval of the Securities Commission Malaysia, Bursa Securities and any other relevant authority, it said.

“Subject to all relevant approvals being obtained, the proposed transfer is expected to be completed by the third quarter of 2020,” said the group.

KAB shares fell 5.5 sen or 6.9% to close at 74.5 sen today, giving it a market capitalisation of RM689.55 million.

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