KUALA LUMPUR: Wawasan Dengkil Holdings Bhd is strengthening its position in large-scale earthworks and civil engineering projects following the successful prospectus launch in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
The company specialises in large-scale excavation, relocation, and compaction of soil and rock to create embankments and platforms for future construction.
Executive director Lim Soon Yik said the launch of the prospectus marks a major milestone for Wawasan Dengkil, reinforcing their commitment to growth and excellence.
“Our expertise in large-scale earthworks is demonstrated through our involvement in key projects such as LRT Line 3 (expected completion March 2025), Central Spine Road (expected completion August 2026), and Sungai Long project (expected completion April 2030). Moving forward, the IPO proceeds will act as a catalyst to strengthen our market presence and drive expansion.
“We are focused on expanding our involvement in major projects including residential, commercial, and industrial property developments, as well as roads, highways, and utility-related infrastructure.
“On the utilities front, we aim to capitalise on the national push for renewable energy under the National Energy Transition Roadmap by participating in more solar farm infrastructure projects,” Lim said at a press conference following the prospectus launch on Friday.
He noted that a key driver of Wawasan Dengkil’s business is its sizable fleet of machinery and commercial vehicles, which provides greater control over project execution.
“We plan to further expand our fleet by acquiring additional excavators, mobile cranes, and dump trucks. With a strong in-house fleet, we can reduce reliance on third-party suppliers, enhancing cost efficiency and operational flexibility,” he said.
Additionally, Lim disclosed that the company is expanding its expertise into solar farm projects, having submitted six out of 44 tenders worth approximately RM572 million.
“As the government’s strong push for renewable energy, this creates significant opportunities in solar farm infrastructure.
He said one of the group’s completed projects includes the Bidor solar photovoltaic project, featuring a 50 MWac LSSPV plant commissioned by Fabulous Sunview Sdn Bhd. The RM9.4 million project was completed in September 2023.
Although revenue from solar projects remains modest, Lim said the company remains optimistic about future growth, especially after the announcement of the LSS5 results.
“We expect contributions to increase over the coming years. At this stage, successful tenders have yet to proceed, so we are unable to predict revenue growth precisely,” he said.
As of Jan 28, the company has 14 ongoing projects and an unbilled order book of RM378.14 million. Its tender book remains strong at RM1.3 billion, comprising RM724.82 million for earthworks and civil engineering projects related to property development, highways, and urban rail, and RM572.22 million for solar farm infrastructure works.
The RM27.01 million IPO proceeds will be allocated as follows: RM7.58 million (28.1%) for purchasing machinery and commercial vehicles, RM9.85 million (36.5%) for project working capital, RM1.43 million (5.3%) for general working capital, RM3.85 million (14.2%) for bank loan repayment, RM0.3 million (1.1%) for office renovations, and RM4 million (14.8%) for estimated listing expenses.
Financially, Wawasan Dengkil has shown strong growth, with revenue increasing from RM69.86 million in the financial year ended June 30, 2021 (FY21) to RM188.54 million in FY24, reflecting a compound annual growth rate (CAGR) of 39.23%.
Net profit grew from RM7.78 million to RM11.32 million over the same period. Adjusted for gains from asset disposals, net profit rose from RM6.81 million in FY21 to RM10.91 million in FY24, representing a CAGR of 17.02%.
