KUALA LUMPUR (Sept 10): Construction services firm SLGC Bhd has priced its initial public offering (IPO) at 28 sen per share, which will raise RM29.4 million for the company.
Of the amount to be raised, RM9.24 million will be used to buy construction machinery and RM7.56 million to repay bank borrowings.
Another RM7.5 million has been earmarked for general working capital, RM500,000 to upgrade its construction management software and RM4.6 million for listing expenses.
At 28 sen per share, SLGC is valued at a price-earnings (P/E) multiple of about 11.2 times, based on its earnings per share (EPS) of 2.5 sen for the financial year ended Dec 31, 2025 (FY2025).
The IPO price values the group at RM156.8 million based on its enlarged share capital of 560 million shares upon listing.
SLGC’s net profit for FY2025 slid to RM13.99 million, compared with RM16.03 million a year earlier, but revenue rose to RM324 million from RM229.64 million.
For the fours months ended April 30, 2026, the group recorded a net profit of RM6.01 million on revenue of RM149.22 million.
Managing director Yong Zhen Lin said the group is looking to grow its commercial and industrial (C&I) segment, which currently accounts for only a small portion of its order book.
“For us, our preferable ratio is 50-50. So we are trying our best to secure some and we are doing that,” Yong told reporters after the prospectus launch.
He said the group is currently in negotiations with clients on the design and costing of potential C&I projects.
Yong also said SLGC intends to keep design-and-build work as a core focus over the next three years, while prioritising completion of its existing projects.
He said SLGC hopes to grow towards the scale of larger listed contractors.
“For the time being, I think the party that we wish to go forward, maybe like IJM. Then another closer one, maybe like GDB,” he said.
Yong said SLGC hopes to “catch up” with GDB Holdings Bhd within three to five years, while IJM Corp Bhd would be a longer-term benchmark.
The IPO comprises a public issue of 105 million new shares, representing 18.75% of SLGC’s enlarged share capital, and an offer for sale of 63 million existing shares, or 11.25%.
The offer-for-sale shares are expected to raise RM17.64 million for the selling shareholders.
Of the new shares, 28 million are available to the Malaysian public, while two million are reserved for eligible directors and employees. Another 70 million shares are allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, with the remaining five million shares offered to selected investors.
Upon listing, Yong will remain SLGC’s largest shareholder with a 59.6% direct stake, comprising 333.75 million shares, while substantial shareholder Chew Ka Yan will hold a 1.82% direct stake of 10.25 million shares. SLGC project director Liang Yan Herng and contract director Loo Chun Kok will each hold 4.29%, or 24 million shares, in the company.
SLGC is scheduled to list on the ACE Market on Oct 6, with applications for the IPO closing on Sept 22.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.