KUALA LUMPUR (Oct 9): Shares of Ireka Corp Bhd (KL:IREKA) surged to their highest in more than two years on Wednesday, after the construction company announced a RM1.07 billion contract win.

Ireka surged as much as 77% or 26.5 sen to 61 sen, its highest since April 2022, before settling at 50 sen, still up 16 sen or 44.93% from the previous day’s closing of 34.5 sen, giving it a market capitalisation of RM111.91 million. Trading volume totalled 3.22 million shares.

The construction company has secured a RM1.07 billion subcontract to upgrade a section of the Pan Borneo Highway in Sabah. 

The four-year subcontract was awarded by Sabah-based Gammerlite Sdn Bhd, and involves upgrading the road between Kampung Lomou Baru and Kampung Toupus, Ireka said in a statement on Tuesday.

"The award of this contract is a testament to Ireka's technical expertise and long-standing reputation for delivering large-scale infrastructure projects. This achievement further strengthens Ireka’s position in the construction sector, contributing to the group’s future growth and sustainability goals," the company said.

Meanwhile, Ireka expects the subcontract to positively contribute to its net assets and earnings for the financial year ending June 30, 2025 (FY2025) and the project's duration.

For the fourth quarter ended June 30, 2024 (4QFY2024), Ireka narrowed its net loss to RM16.9 million from RM47.27 million a year earlier, with revenue declining to RM6.07 million from RM7.17 million.

The company attributed its earlier losses to exceptional items, including a mark-to-market loss on shares of its joint-venture partner Aseana Properties Ltd.

Ireka officially entered Practice Note 17 (PN17) status on March 1, 2022, after Bursa Malaysia rejected its application for an extension of the relief period that was provided during the Covid-19 pandemic.

Besides, it is currently awaiting Bursa's approval for its application for a six-month extension to submit its regularisation plan.

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Ireka Corp secures RM1.07 bil highway upgrade job in Sabah