Aneka Jaringan targets RM46m proceeds from IPO

The proceeds from the listing exercise will accelerate our growth plans by increasing our fleet of machinery in Malaysia, says MD


PILING and foundation specialist Aneka Jaringan Holdings Bhd is aiming to raise RM46.16 million from its IPO on the ACE Market.

Of the total proceeds from the listing, RM24.26 million or 52.6% will be used for repayment of borrowings, RM17.3 million (37.5%) will go to the purchase of rotary drilling rigs and crawler crane, and the remaining RM4.6 million (9.9%) is to defray IPO expenses.

Priced at 33 sen per share, the group is slated for listing on Oct 20, 2020, with a market capitalisation of RM177.57 million.

Its IPO involves a total offering of 139.89 million new ordinary shares where 26.906 million shares are for the Malaysian public by the way of balloting.

“The proceeds of RM46.16 million from the listing exercise will accelerate our growth plans by increasing our fleet of machinery in Malaysia as we seek to capture further opportunities.

“Armed with our success in Malaysia and Indonesia, our next target is the Singapore market where we have registered a branch office with the intention to start bidding for projects next year,” said the group’s MD Pang Tse Fui in his speech during the company’s prospectus launch in Kuala Lumpur yesterday.

Aneka Jaringan is in the middle of applying for a builder’s licence on Singapore’s Building and Construction Authority’s Builders Licensing Scheme.

Pang hoped to obtain the licence by year-end which would then enable the group to bid for projects in Singapore by the first quarter of 2021.

“We are targeting infrastructure works in Singapore, knowing the city-state has massive spending on infrastructure. We are looking at projects like cross-island rail and water treatment plants.

“Singapore jobs are all massive so, we are looking at almost SGD100 million (RM304.84 million) in projects,” he told reporters after the launch.

On the concerns regarding the rising number of Covid-19 cases in the country which could lead to another round of movement restrictions, Pang said the company is confident it can “sail through” another Movement Control Order (MCO) as it is “fully prepared” for the situation.

“We have been through the MCO a few months back and now we are fully prepared for it. With the new guideline issued by the client which we have been following closely, we are confident we can manage it if there is a second round,” he said.

Pang added that the company is also shifting its focus to government projects due to the slowdown in economic activities.

Aneka Jaringan is tendering for the East-Coast Rail Link line from Kuantan, Pahang to Kota Baru in Kelantan, and will participate in other infrastructure works should the opportunity arise.

The company and its subsidiaries are involved in foundation construction for buildings, elevated highways and rail infrastructure, and basement construction for underground car parks.

For its financial year ended Aug 31, 2019, the group reported revenue and net profit before minority interest of RM221.17 million and RM20.1 million respectively.

Of the total revenue, RM207.71 million or 93.9% was from its Malaysian operations, while Indonesia operations contributed RM13.46 million or 6.1%.

Meanwhile, 83.1% of the revenue came from foundation construction, 16.9% derived from basement construction, while 0.05% was from other works.