KUALA LUMPUR (Dec 12): Construction services firm SLGC Bhd plans to list on the ACE Market of Bursa Malaysia to raise funds to purchase new construction machinery and equipment.
According to its draft prospectus filed with Bursa Malaysia Securities, the initial public offering (IPO) will include 105 million new shares and an offer for sale of 63 million existing shares.
The company, currently controlled by its managing director Yong Zhen Lin with an 82.2% stake, is seeking funds to buy new machinery and equipment, to repay bank loans, to upgrade construction management software, for general working capital and to defray listing-related expenses.
Based in Johor, SLGC is a CIDB G7 building construction contractor and got its start in 2009 under the name SLG Construction Sdn Bhd before being incorporated in 2024. It also has an operations office in Taman Gembira, Kuala Lumpur.
It is principally involved in design and build construction services, and building construction services for residential and non-residential works. SLGC's customers include property developers and building owners in Malaysia, according to its draft prospectus.
The IPO price and market valuation have yet to be announced.
Under the public issue, 28 million shares are allocated to the Malaysian public and two million shares to eligible persons. The company is also setting aside 70 million shares for Bumiputera investors through private placement and five million shares for selected investors.
The offer for sale, meanwhile, involves a private placement of 63 million existing shares to select investors through private placement.
Post-listing, Yong's stake will be reduced to 59.6%. His wife Chew Ka Yan's stake will be cut from 3.6% to 1.8%.
Substantial shareholders Liong Yang Herng and Loo Chun Kok each own 7.1% of SLGC. Both will have their stakes reduced to 4.3% each.
For the year ended Dec 31, 2024, the company reported a net profit of RM16 million against RM229.6 million in revenue.
M&A Securities Sdn Bhd is acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO.