PETALING JAYA: Sabah-based Azam Jaya Bhd has entered into an underwriting agreement with Inter-Pacific Securities Sdn Bhd (Interpac) in conjunction with its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities.
Azam Jaya, via its subsidiaries, is principally involved in the provision of construction services in Sabah, specialising in the construction of major large-scale transport infrastructure including roads, highways, bridges, flyovers and tunnels.
With over 30 years of experience in the industry, the group has a proven track record, successfully completing over 50 construction projects in Sabah. These include prominent road infrastructure projects which were the first of its kind in
Sabah such as the construction of the longest prestressed vehicular bridge across Sungai Sitompok and the construction of Sabah’s first and only vehicular tunnel at Sepanggar, Kota Kinabalu.
Azam Jaya has nine ongoing construction projects, encompassing road infrastructure projects in Sabah, which were all awarded by the Ministry of Works and Sabah Public Works Department. Azam Jaya is involved in the Pan Borneo Highway Project, the upgrading of roads in Kota Kinabalu as well as rural road projects.
As at Aug 31, the ongoing construction projects have an unbilled contract value (order book) of about RM1.45 billion.
Azam Jaya’s IPO encompasses a public issuance of 78.8 million new ordinary shares (issue shares), representing 15.8% of its enlarged share capital, as well as an offer for sale of 50 million existing shares (offer Shares), or 10% of its enlarged share capital.
Some 25 million issue shares will be made available to the Malaysian public via balloting; 10 million issue shares to its eligible directors, employees and persons who have contributed to the success of the group (pink form allocations); and the remaining 43.8 million issue shares as well as the 50 million offer shares to institutional and selected investors through private placement.
Pursuant to the underwriting agreement, Interpac will underwrite 35 million issue shares made available to the Malaysian public and pink form allocations.
Azam Jaya executive director Datuk Lo Vun Che @ Jessica said, “Today’s signing of the underwriting agreement with Interpac marks a significant milestone in our journey towards listing on the Main Market of Bursa Securities. This
listing will unlock greater resources and financial flexibility, enabling us to further enhance our construction capabilities and solidify our position as one of the major road infrastructure players in Sabah.”
She added that infrastructure development is vital to unlocking economic opportunities in Sabah by enhancing connectivity and facilitating trade expansion.
“The ongoing construction of the Pan Borneo Highway is poised to significantly boost Sabah’s infrastructure landscape. Given our involvement in the project, we are optimistic about the potential to participate further in future phases of the Pan Borneo Highway in Sabah. In addition, we will be tendering for other large-scale road infrastructure and rural road projects asefforts to upgrade and construct roads and bridges in Sabah intensify,” she said.
Looking ahead, Lo said their future plans focus on enhancing construction capabilities through continuous investment in new and innovative construction technologies to increase productivity and optimise costs and resources, thereby improving operational efficiency.
“We also plan to expand our existing fleet of construction machinery and equipment, reducing reliance on subcontractors to gain better control over project timelines and quality,” she added.
Azam Jaya is scheduled to be listed on the Main Market of Bursa Securities in November, with Interpac as the principal adviser, sole underwriter and sole placement agent for the IPO.
