Nestcon signs underwriting agreement for IPO

Building and infrastructure construction services provider Nestcon Bhd is heading for a listing on Bursa Malaysia’s ACE Market.

Yesterday said it had inked an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO).

Scheduled to be listed by June, Nestcon said the IPO entailed a public issue of 161 million new shares and an offer for the sale of 32.2 million existing shares via private placement.

M&A Securities will underwrite 64.4 million of the 161 million new shares, comprising portions to be made available for the public, as well as eligible directors, employees, and persons who have contributed to the company’s success.

Group managing director Datuk Dr Lim Jee Gin said the agreement would begin the last mile of Nestcon’s journey in becoming a listed entity.

“With part of the IPO proceeds, we plan to establish our own onsite industrialised building system facility that will expedite project delivery time and reduce reliance on foreign workers while simultaneously improve the quality of work.”

Nestcon is eyeing larger civil engineering and infrastructure projects, such as highways, transportation infrastructure and renewable energy facilities.

(From left) M&A Securities Sdn Bhd corporate finance head Gary Ting and its managing director (corporate finance) Datuk Bill Tan with Nestcon Bhd group managing director Datuk Dr Lim Jee Gin and its director ( finance) Lim Joo Seng at the signing of the underwriting agreement.