Haily eyes projects outside Johor

KUALA LUMPUR: Haily Group Bhd, which has construction businesses in Johor Baru and Kulai, plans to expand in the near term.

Founder and executive director See Tin Hai said that while the company was keeping its prospects to venture out to other districts and states, it would, for now, maintain its focus on projects in Johor.

“Despite the lockdown, we still get many tenders from clients. We are logging good sales performance due to our Johor projects,” he said at its virtual prospectus launch yesterday.

Sim said prospects for the company to secure new projects would improve due to the pace of the national vaccination drive and the expectation of the reopening of the Malaysia and Singapore border.

Haily has 18 building construction projects and two civil engineering-related construction projects in progress.

Its total secured contract value and unbilled contract value up to June 10 stood at RM460.04 million and RM249.58 million, respectively.

“The projects we have in hand will last until 2023. We have an unbilled order book of RM250 million,” said Sim, adding that the company was bidding for landed residential, commercial and industrial projects.

En route to be listed on the ACE Market of Bursa Malaysia, Haily aims to raise RM20.4 million from its initial public offering (IPO).

The company is issuing 30 million new shares at an issue price of 68 sen per share.

Of the 30 million shares, Haily is offering 8.92 million shares to the public, 10 million to its eligible directors, employees and persons who have contributed to the company’s success and 11.08 million to selected investors by way of a private placement.

There will be an offer for sale that involves 18 million existing ordinary shares via a private placement to selected investors, which will raise a gross proceed of RM12.24 million.

Haily plans to use RM4.2 million or 20.59 per cent of the IPO proceeds to buy construction machinery, equipment as well as new contract management and accounting software and office equipment.

The other 29.41 per cent or RM6 million will be used for working capital for construction projects, 34.31 per cent or RM7 million for repayment of bank borrowings, and 15.69 per cent or RM3.20 million for listing expenses.

The projects we have in hand will last until 2023. We have an unbilled order book of RM250 million.

SEE TIN HAI

Haily Group Bhd founder and executive director