Tuju Setia IPO Oversubcribed by 42.1 Times

Construction services company, Tuju Setia Berhad received positive response for its Initial Public Offering (IPO), with the overall public tranche of the IPO oversubscribed by 42.1 times. It is also the first company to be listed on the Main Market of Bursa Securities in 2021 on 19 May 2021.

Tuju Setia received a total of 21,292 applications for 682.3 million shares with a total value of RM477.6 million for the 15.9 million shares that were made available for application by the Malaysian public.

The Bumiputera portion of shares were oversubscribed by 37.2 times, after a total of 11,006 applications for 302.8 million shares were received. While the public portion of shares were oversubscribed by 46.9 times, after a total of 10,286 applications for 379.5 million shares were received.

In addition, Ministry of International Trade and Industry (MITI) received excess applications of 75.3 times for the private placement to selected Bumiputera investors portion after a total of 3,799 applicants for 2.42 billion shares were received.

Wee Eng Kong (“黄永光”), Managing Director of Tuju Setia Berha said, “This oversubscription denotes the investing public’s appreciation and confidence of our achievement and future prospects, proven by our extensive construction track record, selective clientele and buoyant prospects in fulfilling higher demand for high-rise buildings, hospitals and healthcare facilities.

Moving forward, we will strive to maintain our momentum in securing more projects and increase our current order book of RM953.1 million from our growing tender book of approximately RM4.0 billion.

Moreover, Tuju Setia’s dividend policy to distribute a dividend of 25 percent of our annual net profit to our shareholders also signifies the Board’s commitment to reward our shareholders together with our future business growth.”

As at March 31, Tuju Setia’s RM953.1 million orderbook comprises projects such Mutiara Central Office Suites (Cheras), Riana Dutamas – Phase 2 (Segambut), The Pulse Residence (Bandar Puteri Puchong), 121 Residences (Petaling Jaya), PPAM Sofiya Residensi (Desa ParkCity), Emerald Hills – Phase 3 and 4 (Cheras), TUAI Residence (Setia Alam) and the Kajang Women and Children Hospital. These projects will sustain Tuju Setia’s profitability until 2024.

Tuju Setia’s IPO entails the issuance of 80.0 million new shares at RM0.70 per share. Of the 80.0 million new shares, 15.9 million shares were made available for application by the Malaysian public via balloting, and 6.3 million shares were made available for
application by the Group’s eligible directors, employees and persons who have contributed to the success of the Group.

While 31.7 million shares were made available by way of private placement to selected bumiputera investors approved by the Ministry of International Trade and Industry. The balance 26.1 million new shares, together with 27.0 million existing offer-for-sale shares, were placed out to selected investors by way of private placement.

Of the RM56.0 million IPO proceeds raised, RM32.0 million will be allocated for capital expenditure. This would be utilised to purchase new construction machinery and equipment, and Building Information Modelling (BIM) system software to upskill design and construction activities.

Additionally, the Group would acquire land and construct new storage facilities for better organisation and utilisation of machinery & equipment and improve efficiency of maintenance works.

A further RM19.0 million will be allocated for working capital, and RM5.0 million to defray listing expenses. Alliance Investment Bank Berhad is the principal adviser to Tuju Setia’s IPO exercise, as well as joint underwriter and joint placement agent, together with CIMB Investment Bank Berhad.

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