KUALA LUMPUR (Oct 11): Lim Seong Hai Capital Bhd, a construction and engineering firm, has filed for an initial public offering (IPO) as part of its listing transfer to the ACE Market from the LEAP Market.

The company is now controlled by the niece and nephews of Johor real estate tycoon Tan Sri Lim Kang Hoo of Ekovest Bhd (KL:EKOVEST) and Iskandar Waterfront City Bhd (KL:IWCITY). 

The proposed IPO involves a public issue of 132 million new shares and an offer for sale of 59 million existing shares at a price to be determined later, according to its draft prospectus. All in all, the IPO offers investors up to 22.78% stake in the company.

Proceeds from the IPO will be mainly used as working capital for its construction projects, the company said. Outstanding orderbook totalled RM1.06 billion for building projects, and the company also has RM532.09 million unbilled from infrastructure construction and engineering work contracts.

The property development division, meanwhile, will focus on delivering the existing LSH Segar project, which has a gross development value of RM395.86 million, and the launch of RM1.15 billion Lake Side Homes in the second half of 2025.

Based in Kuala Lumpur, Lim Seong Hai did not raise any proceeds from its listing on the LEAP Market back in 2021. The company, however, raised RM4.66 million from pre-listing investors who were employees and outside associates of the company, which has since been nearly used up.

Apart from construction and property development, the company also supplies building materials, lighting and related mechanical and electrical products, hardware products and tools, rental of construction machinery, and equipment.

In the six months ended March 31, 2024, the company made a net profit of RM31.09 million, on a revenue of RM215.1 million.

Under the public issue, the IPO allocates 16.77 million new shares to the Malaysian public, 12.58 million to eligible persons, and 102.66 million shares to approved Bumiputera investors, through private placement.

The offer for sale through private placement, meanwhile, involves 2.14 million existing shares to approved Bumiputera investors, and 56.86 million shares to institutional and select investors.

Proceeds from the sale of existing shares will accrue entirely to the selling shareholders — chairman Tan Sri KC Lim, vice chairman Datuk Lim Keng Guan, managing director Lim Pak Lian and director Lim Keng Hun, as well as their private vehicle Lim Seong Hai Resources Sdn Bhd.

All four are siblings. Post-listing, their combined stakes will be diluted to a little under 65%.

AmInvestment Bank Bhd is the IPO’s principal adviser, sponsor, sole underwriter and sole placement agent.