Kejuruteraan Asastera eyes ACE Market listing

PETALING JAYA: Kejuruteraan Asastera Bhd (KAB) is looking to list on the ACE Market of Bursa Malaysia with an initial public offering (IPO) of 112 million shares.
According to a draft prospectus exposure on the Securities Commission Malaysia (SC) website, the IPO will comprise a public issuance of 80 million new shares and offer for sale of up to 32 million existing shares.
Of the proceeds raised, 58% will be used for working capital, 12.5% for capital expenditure, 9.1% for repayment of bank borrowings and 17% for estimated listing expenses. About 3.4% will be used to set up a proposed new branch office in Johor Baru and an additional office in Kuala Lumpur.
KAB is principally involved in the provision of electrical and mechanical engineering services and its customers are primarily main contractors, project owners and property developers in the construction industry.
Moving forward, KAB aims to grow its market share in Malaysia by increasing tendering activities, focusing on affordable housing sector and geographical expansion.
It is also looking to diversify its revenue stream by providing maintenance services including upgrading, expansion, refurbishment, retrofitting and renovation projects.
KAB’s net profit rose 44% from RM4.55 million in FY15 to RM6.56 million in FY16.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.