Ikhmas Jaya eyes RM5 billion jobs by year-end

KUALA LUMPUR: Ikhmas Jaya Group Bhd, which is en route to a listing on the Main Market of Bursa Malaysia, is looking to tender for construction and infrastructure projects worth RM5 billion by year-end to bolster its current order book of RM346 million.
"Our current tender book is at RM3 billion and by the end of this year I think we will tender another RM1 billion to RM2 billion jobs," group managing director Datuk Ang Cheng Siong told a press conference after its prospectus launch of the piling and engineering specialist here yesterday.
He said the contracts it is tendering for were made up mostly of government affordable homes project, new and extension of highways, as well as the Light Rail Transit Line 3 (LRT3) and Mass Rapid Transit Line 2 (MRT2).
For MRT2 project, Ang said the group will either participate in the main package or support the main contractors as a parting specialist in terms of bore piling, adding the awarding process for the MRT2 project is expected to be announced early next year.
He noted the group's success rate in securing the projects is between 15% and 20%."If there is any fragmentation works that come along and we find it a very good project, we will also participate," he said, adding the group is focusing on local contracts.
Going forward, the group anticipates double-digit growth in its revenue for the financial year ending Dec 31, 2015 (FY15), driven by its strong order book.
"By being listed on Bursa Malaysia and the exposure to the capital markets will provide Ikhmas Jaya with a stronger platform to enhance our business and build a stronger corporate identity," Ang said.
Earlier, he said the group expects to raise RM71.82 million through the issue of its initial public offering (IPO).
Of the RM71.82 million proceeds raised, RM31.8 million will be used for the purchase of construction equipment, RM5 million for purchase of machinery and equipment for manufacturing of prefabricated building system, RM12 million for repayment of bank borrowings, RM18 million for working capital and RM5 million to cover listing expenses.
"We plan to invest the bulk of our IPO proceeds to purchase new construction equipment to allow us to leverage on the opportunities in the piling and construction industry," Ang added.
The group's IPO entails an offer for sale of 56 million existing shares and a public issue of 126 million new shares, of which 26 million new shares will be made available to the Malaysian public at an issue price of 57 sen per share.