KUALA LUMPUR (Feb 28): Wawasan Dengkil Holdings Bhd, an earthworks and civil engineering firm, has launched its initial public offering (IPO) that could raise up to RM40.51 million from the ACE Market.
Priced at 25 sen per share, the IPO will raise up to RM27.01 million from a public issue of new shares, and another RM13.5 million from an offer for sale of existing shares, according to the prospectus unveiled on Friday. All in all, the listing offers up to a 30% stake in the Selangor-based company.
Applications for the IPO will close on March 11, with the company scheduled for listing on March 25.
Wawasan Dengkil will have a market capitalisation of RM135.03 million upon listing based on the IPO price.
Wawasan Dengkil’s operations involve large-scale excavation, relocation, and compaction of soil and rock to create embankments and platforms, forming a foundation for construction works. The company also builds roads, drainage and sewerage systems.
The company has 14 ongoing projects with unbilled orders worth RM378.14 million, and is bidding for projects worth RM1.3 billion. It is involved in major projects, including the third phase of the Light Rail Transit (LRT), said executive director Lim Soon Yik.
"Moving forward, we are focused on expanding our presence in large-scale projects, including residential, commercial and industrial property developments, as well as the construction of roads, highways, and utility-related projects," he said.
More than one-third of the proceeds from the public issue will be allocated for project working capital. The company is also setting aside 28% for the purchase of machineries and commercial vehicles. On the shopping list are five excavators, one mobile crane, and 10 dump trucks.
Meanwhile, Wawasan Dengkil is allocating about 5% of the money raised for general working capital, and using the rest to repay bank borrowings, renovate its office, and defray listing expenses.
Meanwhile, a sum of RM13.5 million from the offer for sale of existing shares will accrue entirely to selling shareholders Lim and his family.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO, while Eco Asia Capital Advisory is the financial adviser.