ACE Market-bound Inta Bina eyeing bigger projects

KUALA LUMPUR: Construction company Inta Bina Group Bhd is aiming to embark on bigger projects through its listing on the ACE Market of Bursa Malaysia.

Speaking to reporters at the prospectus launch last Friday, managing director Paul Lim Ooi Joo said the group has given up a lot of opportunities to construct high-value projects in the past due to limitation of funds.

“In the past, we were always constraint with our limited capital, so our growth was limited.”

However, with its initial public offering (IPO), which is targeting to raise RM26.76 million, Lim said, it will open up more opportunities for the group in terms of big-scale projects.

Of the total proceeds raised, 35.73% or RM9.56 million will be used as working capital for the next one to two years while 33.63% or RM9 million will be used to pay bank borrowings.

In addition, the group will be deploying RM5 million as capital expenditure, which will be invested into Industrialised Building System and aluminium system formwork, which Lim said will not only be a cost-efficient measure, but also increase productivity and reduce reliance on foreign workers.

Inta Bina’s unbilled order book stood at RM486.16 million as at March 31, with RM297.48 million comprising residential projects. It is also tendering for RM434 million worth of projects.

The group’s current focus is on the affordable housing segment, which is in line with the government’s initiative to promote home ownership.

Inta Bina’s IPO entails the issuance of 107.05 million new shares at an issue price of 25 sen per share, of which 26.76 million will be made available to the Malaysian public via balloting while 20.01 million shares are allotted for the group’s directors and employees.

Besides that, 53.52 million shares will be allotted for private placement to Ministry of International Trade and Industry approved bumiputra investors, while the remaining 6.75 million are allocated for selected investors.

The group has been seeing an upward trend in terms of its net profit which grew to RM12.72 million in 2016 from RM11.51 million in 2015 and RM10.59 million in 2014.

Inta Bina’s revenue for financial year 2016 came in at RM257.13 million, down by 5.4% from the RM271.93 million in the previous year.

The company is scheduled to be listed on May 25 and M&A Securities Sdn Bhd has been appointed as the adviser, sponsor, underwriter and placement agent for the IPO exercise.