AME Elite targets demand for industrial properties
KUALA LUMPUR: AME Elite Consortium Bhd is optimistic of better prospects as it positions itself to meet growing demand for industrial properties.
The company made its debut on Bursa Malaysia’s Main Market yesterday at RM1.28 per share, which was 1.54 per cent lower than its issue price of RM1.30.
Group managing director Kelvin Lee Chai said it would leverage its enhanced profile as a listed entity and use proceeds from its initial public offering (IPO) to execute future plans for its integrated i-Park industrial parks in Johor and replicate the iPark brand in other states.
“The holistic approach taken for industrial parks, by providing full-fledged services such as workers’ accommodation and recreational facilities, have attracted multinational corporations.
“We have set in motion plans to expand the i-Park@Senai Airport City from 45.32ha to 76.48ha following the recent acquisition of a parcel of land for Phase 3,” said Lee at the group’s listing ceremony, here, yesterday.
The integrated industrial property solutions provider aims to expand dormitories facilities to cater to the requirements of multinational and local firms.
“This will increase our recurring income stream,” he said.
The main benefits derived from the development of these dormitories include helping companies based in the industrial parks to eliminate the hassle of finding accommodations for their workers and adhere to the government’s regulation to ensure foreign workers are provided with proper accommodation.
The group intends to duplicate the business model for future industrial park developments and proactively monitor and improve the quality of the dormitories as well as its facilities.
AME’s net profit jumped 96 per cent to RM13.1 million in the first quarter ended June 30 from RM6.7 million a year ago.
Revenue rose 60.8 per cent to RM94.4 million from RM58.7 million previously.
The group’s strong performance in the first quarter was mainly due to higher demand for industrial properties on the back of Malaysia’s economic growth, which saw growing investments in the manufacturing sector.
Also accelerating its growth is the United States-China trade war, which has resulted in trade diversion to other countries, including Malaysia.
AME’s listing on the Main Market of Bursa Securities entailed a public issuance of 85.4 million new shares at RM1.30 per share, representing 20 per cent of the group’s enlarged share base of 427.1 million shares upon conclusion of the IPO.
It raised a total of RM166.6 million, of which RM111.1 million would primarily be utilised for business expansion, with the remaining going to selling shareholders via an offer-for-sale.
Of the RM111.1 million, RM69.1 million will be allocated for future industrial property development and investment projects, RM23 million will be utilised as working capital for the i-Park @ Senai Airport City development, RM9 million will be set aside to complete the expansion of the group’s precast concrete fabrication capacity, and the remaining RM10 million for the defraying of listing expenses.