KUALA LUMPUR (April 30): Hartanah Kenyalang Bhd, a Sarawak-based construction services firm, has set its initial public offering at 16 sen per share to raise up to RM31.74 million ahead of its ACE Market listing.

The proposed IPO involves a public issue of 120.90 million new shares and an offer for sale of up to 77.50 million existing shares, according to the prospectus launched on Wednesday. All in all, the listing offers investors up to a 32% stake in the company.

The offering will close on May 27, with listing scheduled for June 9. 

Hartanah mainly provides building construction services focusing on institutional buildings such as schools and other non-residential buildings, as well as infrastructure construction services, especially bridges and roads.

The public issue of new shares is expected to raise RM19.34 million, of which more than half will be used as project working capital, mainly to pay subcontractors and suppliers.

The company also set aside RM3 million to purchase assets. On its shopping list are six new excavators to replace some older assets, and to increase its capacity as well as computer hardware and software to expand into design services.

The rest will be used to partially repay bank borrowings and defray listing expenses. 

The offer of existing shares, meanwhile, will gross RM12.40 million, which will all go to managing director Seah Boon Tiat and his elder brother and deputy Boon Kee, as well as chief operating officer Tony Cheok, strategic investor Peter Chai and minority shareholder Yeo Kwang Min.

The Seah brothers are trained civil engineers.

TA Securities is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter.