KUALA LUMPUR (June 24): Geohan Corp Bhd, which provides foundation and geotechnical services, is planning a listing on the Main Market of Bursa Malaysia to raise funds for its business expansion, including a foray into the Singaporean market.

In its draft prospectus filed with the Securities Commission Malaysia, the company's initial public offering will involve a public issue of 132 million new shares at an issue price to be fixed. This represents 30% of its enlarged share capital. There is no accompanying offer for sale of existing shares.

Established in 2016, Geohan operates mainly in Malaysia, providing a wide range of foundation and geotechnical services such as bored piling, slope stabilisation, micropile works and ground anchors. The company also offers related services like earthworks, steel strutting, bridge and road construction.

Among the more significant projects it has worked on are the First World Hotel in Genting Highlands, the Klang Valley MRT and the East Coast Rail Link (ECRL).

“As we have achieved a steady growth in our business and financial performance in Malaysia in recent years, we are ready to undertake an expansion plan to expand our customer reach to Singapore,” Geohan said.

"In line with our expansion plan, we have in January 2025 obtained our Specialist Builder (Piling Works) licence registered under the Building and Construction Authority of Singapore and have resumed the efforts in tendering projects in Singapore. Further, we plan to establish our physical presence in Singapore by setting up a local sales and administrative office (“Singapore Office”) at a coworking space at the initial stage of our expansion plan," it said.

Geohan's net profit, which doubled from RM6.69 million in its financial year ended Dec 31, 2022, to RM13.95 million in FY2023, was largely unchanged at RM13.82 million in FY2024. Revenue jumped from RM207.98 million in FY2022 to RM328.83 million in FY2023, and further to RM395.22 million in FY2024.

Profit after tax margin, which improved from 3.71% in FY2022 to 4.99% in FY2023, dipped to 4.05% in FY2024.

Under its planned public issue, Geohan will set aside 22 million shares for application by the public and 11 million shares for eligible persons. It will also place out 44 million shares to selected investors and another 55 million shares to Bumiputera investors.

The company is controlled by its managing director Lee Kim Seng, who holds a direct 54.4% stake in the company, and an indirect 41.4% stake via Rogamas Sdn Bhd, which he controls with his wife Lim Tsui Ning.

Post-issuance of the new shares, Lee will directly own about 38.07%, while Rogamas will hold about 29.01% of the company. Then, Lee will, within a month after the prospectus launch, transfer a 25.99% stake to Rogamas, resulting in Rogamas holding 55% in Geohans, while Lee's stake will drop to 12.08%.

Alliance Islamic Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.