PETALING JAYA: Geohan Corporation Bhd, a foundation and geotechnical specialist, yesterday launched its initial public offering (IPO) prospectus in conjunction with its listing on the Main Market of Bursa Malaysia Securities on Dec 5.
Geohan is expected to raise RM72.6 million through the issuance of 132 million new ordinary shares at 55 sen per share, representing 30% of its enlarged issued share capital of about RM204.25 million comprising 440 million shares. Some 55.1% of the proceeds are earmarked for the expansion of the company’s fleet of machinery, specifically for the acquisition of 17 new machines. Meanwhile, 35.26% of the proceeds will be allocated towards working capital, and the remaining 9.64% will be utilised to defray listing expenses.
Based on the enlarged number of issued shares and IPO price of 55 sen per share, Geohan’s market capitalisation works out to RM242 million upon listing.
The company’s order book stood at RM390.39 million as at Oct 22. The existing order book is sufficient to provide strong revenue visibility for at least the next two financial years, reflecting a healthy flow of projects and steady business momentum.
On-going projects include Ativo Annexe (a mixed development in Kuala Lumpur), Causewayz Square @ JBCC and Astaka Arden Residence (both are residential developments in Johor), Veridian Residence (a mixed development in Selangor), Blossom Suites (a residential development in Penang), ParkCity Tower (a commercial development in Kuala Lumpur), and Penang Hill Cable Car (an infrastructure project in Penang).
Managing director Lee Kim Seng said as they ccontinue on their growth journey, they need to purchase more machines to be able to get more business as they strengthen their presence in Malaysia and Singapore.
He added, “Being in this business for 30 years, we have survived the ups and downs of economic cycles and ended up stronger, always keeping our fighting spirit.”
Application for the public issue are open available until 5pm on Nov 21.
Alliance Islamic Bank Bhd is the principal adviser, sole underwriter and placement agent for Geohan’s IPO.
