KUALA LUMPUR (Jan 6): Wawasan Dengkil Holdings Bhd, a construction services company, entered into an underwriting agreement with M&A Securities in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

The company is scheduled to be listed on Bursa in March, with M&A Securities as the principal adviser, sponsor, underwriter, and placement agent for the exercise, and Eco Asia Capital Advisory Sdn Bhd as the financial adviser.

According to the company’s statement, M&A Securities will underwrite a total of 37.81 million issue shares made available to the Malaysian public and pink form allocations.

Wawasan Dengkil’s IPO exercise encompasses a public issuance of 108.03 million new ordinary shares, representing approximately 20% of its enlarged share capital, as well as an offer for sale of 54.01 million existing shares, representing approximately 10% of its enlarged share capital.

The offer price is not known yet.

Under the proposed IPO, the public issue comprises 27.01 million shares to the Malaysian public and 10.8 million shares for eligible persons.

The company will also set aside 40.51 million shares for Bumiputera investors, and 29.70 million shares for selected investors through private placement.

Part of the proceeds raised from the IPO will go towards financing project working capital requirements for the purchase of diesel and subcontractor costs.

The company will also allocate some of the proceeds towards general working capital, repayment of bank borrowings and office renovation. The rest will go towards defraying listing expenses.

“Looking ahead, our strategic focus is on expanding our presence within the local civil engineering and special trade work market, particularly in large-scale projects involving residential, commercial, and industrial property developments, as well as the construction of roads, highways, and utility-related projects,” said the company’s executive director Lim Soon Yik in a statement.

As at May 31, 2024, Wawasan Dengkil had 14 ongoing construction projects with a total contract value of RM558.65 million and an unbilled contract value of RM384.72 million, according to the statement.

These include provision of civil engineering services for Light Rail Transit (LRT) Line 3 Project in Selangor, earthworks and civil engineering services for Central Spine Road Project in Kelantan, and Sungai Long Project in Selangor.

Wawasan Dengkil mainly provides earthworks and civil engineering services. The company is also involved in the trading of construction materials, as well as provision of machinery and commercial vehicles for hire.

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