Sabah-based major road infrastructure construction player, Azam Jaya Berhad, has entered into an underwriting agreement with Inter-Pacific Securities (Interpac) for its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad.
Azam Jaya, via its subsidiaries, is principally involved in the provision of construction services in Sabah, specialising in the construction of major large-scale road infrastructure including roads, highways, bridges, flyovers and tunnels. With over 30 years of experience in the industry, the group has a proven track record, successfully completing over 50 construction projects in Sabah.
These include prominent road infrastructure projects which were the first of its kind in Sabah such as the construction of the longest pre-stressed vehicular bridge across Sungai Sitompok and the construction of Sabah’s first and only vehicular tunnel at Sepanggar, Kota Kinabalu.
Currently, Azam Jaya has nine ongoing construction projects, encompassing road infrastructure projects in Sabah which were all awarded by the Works Ministry and Sabah’s Works Department.
Azam Jaya is involved in the Pan Borneo Highway project, the upgrading of roads in Kota Kinabalu as well as rural road projects. As at Aug 31, 2024, these ongoing construction projects have an unbilled contract value of approximately RM1.45 billion.
Azam Jaya’s IPO exercise encompasses a public issuance of 78.8 million new ordinary shares (issues shares), representing 15.8% of its enlarged share capital, as well as an offer for sale of 50 million existing shares, or 10% of its enlarged share capital.
Some 25 million issue shares will be made available to the Malaysian public via balloting process; 10 million issue shares to its eligible directors, employees and persons who have contributed to the success of the group (pink form allocations) and with the remaining portion of 43.8 million issue shares as well as the 50 million offer shares to institutional and selected investors through private placement.
Pursuant to the underwriting agreement, Interpac will underwrite 35 million issue shares made available to the Malaysian public and pink form allocations.
Azam Jaya Executive Director Datuk Lo Vun Che @ Jessica said the signing of the underwriting agreement with Interpac marks a significant milestone in the group’s journey towards listing on the Main Market of Bursa Securities.
“This listing will unlock greater resources and financial flexibility, enabling us to further enhance our construction capabilities and solidify our position as one of the major road infrastructure players in Sabah,” Lo said.
She added that infrastructure development is vital to unlocking economic opportunities in Sabah by enhancing connectivity and facilitating trade expansion, and the ongoing construction of the Pan Borneo Highway is poised to significantly boost Sabah’s infrastructure landscape.
“Given our involvement in the project, we are optimistic about the potential to participate further in future phases of the Pan Borneo Highway in Sabah.
“In addition, we will be tendering for other large-scale road infrastructure and rural road projects as efforts to upgrade and construct roads and bridges in Sabah intensify,” she said.
“Looking ahead, our future plans focus on enhancing construction capabilities through continuous investment in new and innovative construction technologies to increase productivity and optimise costs and resources, thereby improving operational efficiency. We also plan to expand our existing fleet of construction machinery and equipment, reducing reliance on subcontractors to gain better control over project timelines and quality,” she added.
Azam Jaya is scheduled to be listed on the Main Market of Bursa Securities next month, with Interpac as the principal advisor, sole underwriter and sole placement agent for the IPO exercise.
