KUALA LUMPUR: Vestland Bhd, en route to a listing on the ACE Market of Bursa Malaysia Securities Bhd on Jan 31, 2023, aims to raise RM56.1 million from its initial public offering (IPO).
Group managing director Datuk Liew Foo Heen said the construction services company plans to use 59.7% or RM33.5 million of the proceeds for working capital, in line with the group’s growth strategies.
Additionally, 13.4% (RM7.5 million) of the proceeds will be used to acquire a new head office, 19.2% (RM10.8 million) for performance bonds or cash deposits for construction projects, and the remaining RM4.3 million for listing expenses.
“With the listing expected to be completed next month, this milestone will positively enhance our corporate image and access to funding.
“It will also significantly increase our business competitiveness in terms of cost of funds and human capital, as well as the ability to secure more projects and increase our revenue and earnings,” he said at the launch of the company’s prospectus today.
Vestland is principally involved in the provision of construction services through its wholly-owned subsidiary, Vestland Resources Sdn Bhd.
Liew said the company is optimistic about creating new value for existing and new stakeholders, based on its strong tender book of over RM2 billion worth of projects and an outstanding orderbook of RM947.4 million.
“Our proven track record demonstrates our commitment and excellence in becoming the customer’s preferred choice.
“We are entirely grateful for all the support and belief given to us by our stakeholders, and we look forward to embarking on this journey of sustainable growth together,” he said.
Vestland’s IPO comprises a public issue of 170.0 million new shares and an offer for the sale of 70.8 million existing shares, totalling 240.8 million ordinary shares at an issue price of 33 sen per share, resulting in an estimated market capitalisation of RM311.6 million. – Bernama