Aneka Jaringan aims to raise RM46.16m from ACE Market IPO


ANEKA Jaringan Holdings Bhd, a piling and foundation specialist, aims to raise RM46.16 million from its ACE Market listing on Oct 20.

The initial public offering (IPO) exercise involves the issuance of 139.89 million new shares at 33 sen apiece, which brings its market capitalisation to RM177.57 million.

In its prospectus launched today, the proceeds raised would accelerate the company’s growth by increasing its fleet of machinery in Malaysia.

Of the RM46.16 million total proceeds, RM17.30 million will be used to purchase rotary drilling rigs and crawler crane. The rest will be for repayment of borrowings (RM24.26 million) and to defray IPO expenses (RM4.60 million).

Speaking at a press conference after the launch here, managing director Pang Tse Fui said that with the expansion of the machinery fleet, the company’s revenue was expected to return to its pre-COVID-19 level of RM200 million in the financial year ending Aug 31, 2021 (FY21), and grow 20-30 per cent in FY22.

To ensure continuous projects to be secured amid the current challenging economic situation, the company had been slashing its tender prices and would continue to do so in the near term, he said.

“But we will maintain our profit margin baseline at five per cent,” he said.

Pang, however, discounted the possibility of its profit margin to be affected by material cost, as main material costs took only about 40-50 per cent of its total cost.

Pang said Aneka Jaringan would shift its focus to government projects which currently constituted only about 20 per cent of its total jobs. At present, 80 per cent are private projects.

“With the economic slowdown, we have to shift our focus to government infrastructure projects.

“The East Coast Rail Link (ECRL) is our first priority, and we will participate in any government infrastructure projects in the future,” he said, adding that the company was bidding for the Kuantan-Kota Bharu stretch of the ECRL project.

Given Singapore’s massive spending on infrastructure development, Aneka Jaringan would expand its footprint in the republic post-listing, Pang said, adding that it was looking at securing nearly S$100 million worth of projects there.

“We have registered our branch office in Singapore to start bidding for projects by the first quarter of 2021.

“The projects that we are looking at include the Cross Island Line, the Terminal 5 project at Changi International Airport, and water treatment plant projects in Tuas,” he said.

Pang expects the projects in Singapore to start contributing to the company’s earnings in the third quarter of 2021.

The company’s tender book was about RM1 billion, with its Malaysia order book standing at RM95 million and the order book in Indonesia at about RM3 million, he added.

The group’s key clients include IJM Construction Sdn Bhd, MRCB Builders Sdn Bhd, and PT Waskita Karya from Indonesia.