Monday, 19 June 2017 | MYT 9:40 AM
Advancecon listing to raise RM56.7mil
KUALA LUMPUR: Advancecon Holdings Bhd, which is en route to a listing on the Main Market of Bursa Malaysia on July 10, is raising gross proceeds of RM56.7mil from its initial public offering (IPO) price of 63 sen per share.
According to its prospectus, the earthworks and civil engineering services specialist, is issuing 90 million new shares or 22.4% of its enlarged issued share capital and paid-up share capital.
There will also be an offer for sale of existing shares, where 33 million shares will be allocated for private placement to identified bumiputra investors approved by the International Trade and Industry Ministry.
Advancecon has allocated RM29.7mil, or 52.4% of its IPO proceeds as capital expenditure. It has also earmarked RM12.5mil, or 22% for repayment of bank borrowings while RM10.7mil, or 18.9% for working capital.
The remaining RM3.8mil, or 6.7% will go towards estimated listing expenses.
The company is expected to have RM253.3mil in market capitalisation based on the IPO price upon listing.
For the financial year ended Dec 31, 2016 (FY16), Advancecon posted a net profit of RM26.4mil compared with RM29.9mil in FY15.
Its revenue for the period rose stood at RM234.6mil against RM264.3mil in the previous year.
Group CEO Datuk Phum Ang Kia said: "Our contract wins for the provision of earthworks and civil engineering services for the West Coast Expressway and Pan Borneo Highway solidifies our position as one of the industry players that is able to undertake such large scale projects."
He said that the company is optimistic of its prospects and the raising of funds through the IPO would help prepare its balance sheet for even bigger scale projects.
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| ADVCON (5281) - IPO: Advancecon Holdings Berhad listing to raise RM56.7mil |
http://www.thestar.com.my/business/business-news/2017/06/19/advancecon-listing-to-raise-rm56-7mil/
