Aneka Jaringan to issue 140m new shares for ACE Market listing

PETALING JAYA: Aneka Jaringan Holdings Bhd is planning an initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd with a public issue of 139.89 million new shares.

This comprises 26.91 million new shares for application by the public; 13.45 million new shares for eligible directors and employees; 45.72 million new shares by private placement to selected investors and 53.81 million shares by private placement to selected bumiputra investors, according to its prospectus exposure with the Securities Commission Malaysia.

Aneka Jaringan specialises in foundation construction namely bored piling, which is used to support buildings as well as elevated highways and rail infrastructure.

It also carries out basement construction mainly for underground car parks. Within foundation and basement construction, it also constructs retaining walls, which are stabilising structures built to hold back the pressures of soil and/or water for basement walls as well as tunnels.

In FY19, revenue from foundation and basement construction was RM221.05 million, representing 99.95% of the group’s total revenue. The remainder of RM120,000 (0.05% of its total revenue) was generated from rental of construction machinery and equipment to external parties.

Aneka Jaringan said it plans to use the IPO proceeds for the purchase of new rotary drilling rigs and crawler cranes, as well as for the repayment of borrowings.

“Moving forward, we will continue to strengthen on our core competency in foundation and basement construction. Part of our overall strategies is to strengthen our facilities in Malaysia, expand our operations in Indonesia as well as explore opportunities in other regional markets,” it said.

In FY19, the group’s net profit jumped 35.8% to RM20.13 million from RM14.82 million a year ago, but revenue was down 17.1% to RM266.87 million from RM221.17 million.