KUALA LUMPUR (Nov 7): Road infrastructure construction firm Azam Jaya Holdings Bhd (KL:AZAMJAYA), set to list on the Main Market of Bursa Malaysia next Monday (Nov 11), reported a net profit of RM4.65 million or 0.93 sen per share for its second quarter ended June 30, 2024 (2QFY2024).
Quarterly revenue stood at RM75.04 million, according to its filing on Thursday. No comparative figures were provided as this is Azam Jaya's first interim financial report prior to its listing.
For the first half of the financial year (1HFY2024), Azam Jaya reported a net profit of RM7.82 million on revenue of RM148.82 million, primarily driven by construction activities across eight projects, as well as the sale of ready-mixed concrete and asphalt premix.
The company did not declare any dividend for both the current quarter and the cumulative period.
Looking forward, Azam Jaya aims to secure additional phases of the Pan Borneo Highway Project, along with other rural road developments to further expand its portfolio and support infrastructure growth in Sabah.
The Sabah-based company currently oversees nine ongoing construction projects, with an unbilled contract value of RM1.45 billion expected to sustain earnings and cash flow through FY2028, its filing said.
Azam Jaya's shares are offered at 78 sen each for its initial public offering (IPO), giving the company a price-earnings ratio of 15.01 times, based on its profit after tax of RM26 million for the financial year ended Dec 31, 2023 (FY2023).
The IPO is expected to raise RM61.46 million, with RM28.4 million allocated for working capital, RM20 million for repayment of bank borrowings, and RM8 million to enhance its construction capabilities. The remaining RM5.06 million will cover listing expenses.
Upon listing, Azam Jaya is expected to achieve a market capitalisation of RM390 million, based on its issue price of 78 sen per share and an enlarged share capital of 500 million shares.
Inter-Pacific Securities Sdn Bhd is the principal adviser, sole underwriter, and sole placement agent for the IPO.