By Ronnie Teo onBusiness
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Seah (third left) signed the underwriting agreement on behalf of Hartanah Kenyalang, while TA Securities Holdings Berhad was signed by Ku (fourth left).
KUCHING (April 11): Hartanah Kenyalang Bhd (Hartanah Kenyalang) has signed an underwriting agreement with TA Securities to underwrite a total of 49.6 million new shares for its upcoming listing on the ACE Market of Bursa Malaysia by the second quarter of 2025.
TA Securities is Hartanah Kenyalang’s principal adviser, sponsor, sole underwriter and sole placement agent for the company’s initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.
Hartanah Kenyalang targets to list its entire enlarged issued share capital of 620 million ordinary shares on the ACE Market of Bursa Malaysia.
Hartanah Kenyalang is principally an investment holding company, while its subsidiary, Hartanah Construction Sdn Bhd, is involved in building construction services, with a focus on institutional buildings such as schools and other public buildings, and other non-residential buildings; as well as infrastructure construction services, with a focus on bridges and roads.
Hartanah Kenyalang’s IPO entails the public offering of 198.4 million ordinary shares comprising a public issue of 120.9 million new shares and an offer for sale of 77.5 million existing shares which collectively represent 32 per cent of the company’s enlarged issued share capital of 620.0 million ordinary shares.
Hartanah’s managing director, Seah Boon Tiat, commented: “The signing of the underwriting agreement with TA Securities not only reinforces their confidence in us but also takes us a step closer to our IPO.
“This comes at an opportune time as we are ready to take advantage of the vast opportunities in the construction industry in Sarawak.
“Against the backdrop of growth prospects in Sarawak’s construction sector, we plan to utilise part of the proceeds from IPO exercise to purchase six new excavators to replace some of our older excavators as well as increase our capacity and productivity for our construction works.
“In addition, we also plan to expand into offering design and build services for both our building construction and infrastructure construction services segments by investing in the Building Information Modelling (BIM) system where this technology digitises various aspects of a construction project by using a 3-dimensional model.”
Ku Mun Fong, head of corporate finance, TA Securities commented: “The group has a competitive edge and market presence in Sarawak with the majority of the Group’s revenue generated from construction projects commissioned by the Sarawak state government and the Federal government for the construction of schools and public buildings, as well as bridges and roads.
“Thus, the continuing spending by both the Sarawak state and Federal governments as well as quasi-government entities is expected to contribute positively to the business operations and financial performance of the Group.
“We believe Hartanah Kenyalang has a solid foundation for its future growth. We look forward to continuing our relationship with Hartanah Kenyalang in its next stage of growth while acting as the company’s sponsor after listing.”
ace market Bursa Malaysia Hartanah Kenyalang TA Securities underwriting agreement
