Ikhmas Jaya shares close 44% higher on debut

28 Jul 2015 / 05:36 H.
    Ikhmas Jaya shares close 44% higher on debut
    From left: Ikhmas Jaya executive director Ang Wei Zhen, independent non-executive director Datuk Syed Ariff Fadzillah Syed Awalludin, independent non-executive director Tan Ming li, executive director Siew Mun Lout, Ang and independent non-executive director Dzukifli David Abdullah at the company's listing ceremony at Bursa Malaysia. Ahmad Safwan/theSUN

PETALING JAYA: Piling and engineering specialist Ikhmas Jaya Group Bhd made its debut on the Main Market of Bursa Malaysia yesterday with its share price closing 44%, or 25 sen higher at 82 sen, above its 57 sen issue price.
The group is engaged in engineering and construction activities, which it involved in piling and foundation works, bridge construction, building construction and other civil works.
Ikhmas Jaya's shares hit a low of 67.5 sen and high of 82 sen on the the first day of trading. It was the most active counter, with some 171.58 million shares changing hands.
Speaking at a press conference after its listing ceremony, the group's managing director Datuk Ang Cheng Siong said he is buoyant on the group's long-term prospects, on the progress of existing projects and potential jobs it hopes to secure.
He said the contracts it is tendering for were made up mostly of infrastructure jobs, such as work for the Mass Rapid Transit Line 2 (MRT2) and Light Rail Transit Line 3 (LRT3), as well as the government affordable homes projects.
"In the next few years, there will be a lot of high-rate projects for the city transformation programme, such as the implementation of the MRT2 and LRT3. All of these projects are our forte."
"Being a bore pile specialist, we expect there could be a shortage (in terms of piling specialists) when the MRT2 and LRT3 is implemented," said Ang.
He anticipates double-digit growth in its revenue for the financial year ending Dec 31, 2015 (FY15), driven by its strong orderbook of RM346 million that is made up of mostly construction jobs.
For the first quarter ended March 31, 2015, the group recorded a 93.39% jump in net profit to RM8.49 million, from RM4.39 million in the previous corresponding quarter.
Its revenue was also up by 36% to RM76.34 million, compared to RM56.17 million a year ago. According to a filing with Bursa Malaysia, the increase in both revenue and net profit was mainly contributed from its railway track project.
Ikhmas Jaya plans to use RM71.82 million of the proceeds it has raised for the purchase of construction equipment (RM31.8 million, 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.
The group's IPO entails a public issue of 126 million new shares and 56 million existing shares.

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