Aneka Jaringan eyes RM46.16 million proceeds from ACE Market IPO

Piling and foundation specialist, Aneka Jaringan Holdings Berhad has advanced closer to becoming a public listed entity with the launch of its prospectus in conjunction with the Company’s listing on the ACE Market of Bursa Malaysia Securities Berhad. The prospectus launch marks the opening of Aneka Jaringan’s retail offering of 26.906 million shares for the Malaysian public. Retail applications will close on Oct 9. The Company is slated for listing on Oct 20 with market capitalization of RM177.57 million.

Aneka Jaringan and its subsidiaries (the “Group”) are involved in foundation construction for buildings, elevated highways and rail infrastructure as well as basement construction for underground carparks. For the financial year ended Aug 31, 2019, the Group reported revenue and net profit before minority interest of RM221.2 million and RM20.1 million, respectively. Key clients of the Group include IJM Construction Sdn Bhd, MRCB Builders Sdn Bhd and PT Waskita Karya from Indonesia.

During the prospectus launching ceremony, Managing Director Pang Tse Fui said, “Foundation and piling are niche areas of construction where there are only a handful of seasoned and experienced players. Over the years, we built our reputation based on innovative, high quality and timely delivery.  Foundation is the starting point and core of every asset and we are proud to have secured roles in iconic projects such as Pavilion KL, Bukit Bintang City Centre, Platinum Park and the West Coast Expressway, just to name a few. Our long-term relationship with our customers is an endorsement of our technical expertise, capabilities and reliability.

The proceeds of RM46.16 million from the listing exercise will accelerate our growth plans by increasing our fleet of machineries in Malaysia as we seek to capture further opportunities. Armed with our success in Malaysia and Indonesia, our next target is the Singapore market where we have registered a branch office with intention to start bidding for projects next year.”

At the Initial Public Offering (“IPO”) price of RM0.33 per share, Aneka Jaringan will list with market capitalization of RM177.57 million and raise RM46.16 million from its IPO. Of the total proceeds, RM17.30 million will be utilized for purchase of rotary drilling rigs & crawler crane, RM24.26 million for repayment of borrowings and RM4.60 million to defray IPO expenses.

Aneka Jaringan’s IPO involves a total offering of 139.890 million new ordinary shares, in the following manner:

  • 26.906 million shares to the Malaysian public by way of balloting;
  • 13.453 million shares to eligible directors, employees and persons who have contributed to the success of the Group;
  • 45.721 million shares to selected investors by way of private placement; and
  • 53.810 million shares to Bumiputra investors approved by the Ministry of International Trade and Industry (“MITI”) by way of private placement.

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