KUALA LUMPUR, 30 JUNE: Haily Group Bhd, a residential and non-residential building contractor, plans to raise RM20.4 million through an initial public offering (IPO) on the ACE Market of Bursa Malaysia. The IPO would consist of a public offering of 30 million shares at a price of 68 sen each.
Haily stated in a statement released today in conjunction with the introduction of its prospectus that it plans to use RM4.2 million (20.59 percent) of the RM20.4 million collected to purchase construction machines, equipment, as well as new contract management and accounting software and office equipment. The remaining RM3.2 million (15.69 percent) will be used for listing expenses, while another RM6 million (29.41 percent) will be used for working capital for construction projects, RM7 million (34.31 percent) will be used to repay bank borrowings, and the remaining RM6 million (29.41 percent) will be used for working capital for construction projects.
See Tin Hai, the founder and executive director of Haily, said: “The listing exercise is a critical next step in raising our group’s profile and improving our reputation as we advertise our construction services and expand our client base in Malaysia. We are thrilled to provide investors and institutions the opportunity to participate in our equity and future growth.”
“We will have adequate working capital to meet our current and foreseeable requirements as we continue to replenish and enlarge our order book to provide business growth, taking into account our healthy cash position, expected profits from our operations, the amount available under our existing banking facilities, and proceeds expected to be raised from the public issue.”
Upon completion of the listing, Haily intends to issue dividends of at least 30% of its yearly profits attributable to its shareholders, but it notes that this “is not a legally enforceable obligation/guaranteed pledge to the shareholders.”
It further stated that the group declared and dispersed RM10.01 million, RM5.25 million, RM6 million, and RM2.5 million in dividends for the financial years ended December 31, 2017, FY18, FY19, and FY20, respectively.
The organization also stated that it is now working on 18 building construction projects and two civil engineering-related projects.
As of June 10, 2021, Haily’s total secured contract value and unbilled contract value were RM460.04 million and RM249.58 million, respectively, according to the company’s statement.
It is predicted that the ongoing developments would be finished in stages between 2021 and 2023.
Haily’s key strength is building construction in Johor, namely in the districts of Johor Bahru and Kulai, and the company intends to keep focused on that while leveraging its knowledge to expand its reach to other districts, according to Haily. The listing exercise will aid with this, as well as allow them to purchase new construction machines and equipment in anticipation of future expansion, according to the company.
The group stated that of the 30 million shares, 8.92 million new shares will be made available to the Malaysian public, with at least 50% set aside for Bumiputera investors; 10 million new shares will be given to eligible directors, employees, and persons who have contributed to the group’s success; and 11.08 million new shares will be given to selected investors as part of the IPO exercise.
In addition, the company’s promoter will make an offer for sale of 18 million existing ordinary shares in Haily through a private placement to selected investors, raising gross proceeds of RM12.24 million. Haily Holdings Sdn Bhd, See, and Haily Construction Sdn Bhd director Kik Siew Lee are its promoters.
TA Securities Holdings Bhd is the primary adviser, sponsor, underwriter, and placement agent for the IPO. Continue reading
