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Thursday, July 23, 2015

Soon-to-be-listed Ikhmas Jaya's profit rises

KUALA LUMPUR: Ikhmas Jaya Group Bhd, which is scheduled for listing on the Main Market on Monday next week, posted a 93.4% jump in net profit to RM8.49mil for the first quarter ended March 31, 2015, compared to a year earlier, thanks mainly to the contribution of a railway track project.

In a filing with Bursa Malaysia on Wednesday, the engineering and construction firm said its revenue increased 35.9% year-on-year to RM76.34mil for the quarter.

Barring unforeseen circumstances, the group expects a better performance in 2015 on the back of continued growth in the country’s piling and foundation services market.

“Revenue from bore piling is expected to grow in view of our future plan to enhance our bore piling capabilities by expansding our fleet of bore piling machinery,” the bore piling specialist said.

“The group’s manufacturing and installation of prefabricated building system segment is also expected to grow because the Malaysian government has encouraged the use of prefabricated building system in the construction industry, particularly for the construction of low to medium-cost houses, as this building system can produce a large number of houses at affordable costs.”

Under its initial public offering, Ikhmas Jaya is undertaking a public issue of 126 million new shares - about 24.23% of its enlarged issued and paid-up capital - and an offer for sale of up to 56 million shares.

From the public issue, the company is expected to raise RM71.82mil in gross proceeds, of which RM36.82mil would be used to buy construction equipment (to expand its bore piling fleet) and equipment for making prefabricated building system (to double its annual manufacturing capacity). 

Ikhmas Jaya’s 26 million public issue shares for the Malaysian public were oversubscribed by 8.16 times, according to Malaysia Issuing House Sdn Bhd.

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