(From left) Azam Jaya Bhd alternate director Datuk Johannes Lo Chaw Jack, Azam Jaya Bhd executive director Datuk Jessica Lo Vun Che, Azam Jaya Bhd executive chairman Tan Sri Datuk Seri Panglima Joseph Lo (Tan Sri Joseph), Azam Jaya Bhd managing director Datuk Jonathan Lo Chaw Loong, Inter-Pacific Securities Sdn Bhd senior advisor, capital markets & corporate finance, Denis Lim Seng Huat; and Inter Pacific Securities Sdn Bhd head of capital markets & corporate finance Anuar Omar at Azam Jaya Bhd’s prospectus launch and press conference on Friday. (Photo by Shahrill Basri/The Edge)

KUALA LUMPUR (Oct 18): Main market-bound Azam Jaya Bhd, a Sabah-based construction firm, aims to raise RM61.5 million from its initial public offering (IPO), and set its IPO price at 78 sen per share.  

From the IPO proceeds of RM61.5 million, the group has allocated RM8.0 million (13.0%) to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment, as well as technological upgrades.   

The proposed IPO involves a public issue of 78.8 million new shares and an offer for sale of up to 50 million existing shares, according to its IPO prospectus launched on Friday.   

The offer will close on Oct 24, 2024, and the listing has been scheduled for Nov 11, 2024.     

The company is allocating 10 million shares for eligible persons, 25.0 million shares to the Malaysian public, and 43.8 million shares by way of private placement to institutional and selected investors.  

In terms of dividend policy, Azam Jaya targets to distribute at least 30% of its net profits to shareholders. 
 
“With the launch of our prospectus, Azam Jaya is now one step closer to becoming a public-listed company on the Main Market of Bursa Securities,” said Azam Jaya executive director Datuk Jessica Lo Vun Che in a statement.  

“This IPO is a pivotal step in our long-term growth strategy, enabling us to enhance our construction capabilities and capacity to undertake more large-scale projects,” she added. 

Azam Jaya, through its subsidiaries, specialises in the construction of large-scale road infrastructure in Sabah, including roads, highways, bridges, flyovers, and tunnels. With over 30 years of experience in the industry, the group has a proven track record, having completed over 50 construction projects in the region.  

Azam Jaya aims to further elevate the construction standards in Sabah, introducing innovative techniques and high-quality engineering to meet the growing demands of the region.  

Inter-Pacific Securities is the adviser, sponsor, underwriter and placement agent for the IPO.