Inta Bina to raise RM26.76 mln from IPO

KUALA LUMPUR: Construction firm Inta Bina Group Bhd, which is en route to a listing on the ACE market on May 25, aims to raise RM26.76 million from its initial public offering (IPO) exercise.

Managing director, Paul Lim, said out of the total proceeds, RM5 million would be used to invest in the Industrialised Building System (IBS) and various machinery, RM9 million to pay bank borrowings, RM9.56 million for general capital requirements and the remaining RM3.2 million to defray listing expenses.

He added that the group planned to enter the affordable housing segment efficiently through the usage of aluminium system formwork under the IBS.

“We believe that the usage of aluminium system formwork is best suited for affordable housing projects and will improve our cost competitiveness in the long run as it will reduce project labour cost and shortens construction period,” he told reporters after the launch of the group’s prospectus yesterday.

Also present was deputy managing director, Teo Hock Choon.

Thegroupiscurrentlyinvolvedin an affordable housing project, Eco Majestic, in Semenyih, Selangor, with a gross development value of over RM80 million.

In the first quarter of 2017, Inta Bina submitted tenders for nine projects, including residential and non-residential projects in the Klang Valley and Johor worth some RM434.05 million.

The group also had an unbilled order book of RM486.16 million that would keep it busy until 2019, said Lim.

“We are confident that we will able to secure repeated orders from our existing clients such as Eco World Development Group Bhd and Mah Sing Group Bhd. We also participate in tenders by our potential clients,” he added.

Under its IPO, Inta Bina is issuing 107.05 million new shares at an issue price of 25 sen apiece. Some 26.76 million shares will be made available to the public via balloting, 20.01 million shares for eligible directors and employees, 53.53 million shares reserved for private placement for selected Bumiputera investors while the remaining 6.75 million have been earmarked for private placement for selected investors.

Based on enlarged share capital of 535.26 million shares, Inta Bina Group is expected to have a market capitalisation of RM133.81 million. — Bernama

Lim (third, left) with M&A Securities Sendirian Berhad managing director of Corporate Finance, Datuk Bill Tan (third, right) and other board members holding a prospectus book during photography session after the launch of the group’s prospectus...