KUALA LUMPUR (Oct 29): Foundation and geotechnical engineering specialist Geohan Corp Bhd has signed an underwriting agreement with Alliance Islamic Bank Bhd ahead of its planned initial public offering (IPO) and listing on the Main Market of Bursa Malaysia Securities Bhd.
The IPO will involve a public issue of 132 million new shares, representing 30% of Geohan’s enlarged issued share capital of 440 million shares upon listing, the company said in a statement on Wednesday.
Of these, 22 million shares will be made available for public subscription via balloting, 11 million shares for eligible directors, employees and contributors to the group, 55 million shares for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 44 million shares for institutional and selected investors.
There is no accompanying offer for sale of existing shares.
Alliance Islamic Bank is the principal adviser, sole underwriter and placement agent for the IPO.
“Geohan’s journey from its humble beginnings three decades ago to this monumental milestone marks an exciting new chapter for us,” Geohan managing director Lee Kim Seng said. “This profound achievement is not only about growth, but also a recognition of the unwavering dedication, incredible talent and collaborative spirit of our people who have been instrumental in shaping the group’s success.”
He added that the company is expanding its machinery and equipment fleet to accelerate project delivery timelines and enhance competitiveness as it broadens its customer base in Singapore.
Established in 2016, Geohan provides foundation and geotechnical services, including piling, slope stabilisation, ground improvement, and sub-structure works. It has worked on projects such as Genting Highlands’ First World Hotel, Sky Avenue, and national infrastructure undertakings such as the Klang Valley MRT and the East Coast Rail Link.
In June, Geohan filed its draft prospectus with the Securities Commission Malaysia to raise funds for business expansion. The company said it obtained a Specialist Builder (Piling Works) licence from Singapore’s Building and Construction Authority earlier this year and plans to open a local sales and administrative office there.
Geohan’s net profit rose to RM13.82 million in FY2024 from RM6.69 million in FY2022, while revenue climbed from RM207.98 million to RM395.22 million over the same period.
The company is controlled by Lee, who holds a direct 54.4% stake 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 transfer a 25.99% stake to Rogamas, resulting in Rogamas holding 55% in Geohan, while Lee's stake will drop to 12.08%.