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BUSINESS

Tuju Setia inks IPO agreement

06/04/2021 07:45 PM

KUALA LUMPUR, April 6 -- Tuju Setia Bhd has appointed Alliance Investment Bank Bhd (AIBB) and CIMB Investment Bank Bhd (CIMB IB) as its joint underwriters and placement agents for its Main Market listing on Bursa Malaysia, slated to take place in the second quarter of 2021.

Under the initial public offering (IPO) underwriting agreement inked with the two investment banks today, Tuju Setia said AIBB would be the principal adviser for its IPO exercise, as well as the joint underwriter and joint placement agent, together with CIMB IB.

“The agreement also paves the way for Tuju Setia to possibly becoming the first Main Market IPO on Bursa Malaysia in 2021,” the construction services company said in a statement today.

Tuju Setia said the IPO exercise entailed a public issue of 80 million new shares and an offer for sale of 27 million existing shares.

“Of the 80 million new shares, 15.9 million shares will be made available for application from the Malaysian public via balloting, and 6.3 million shares will be made available for application by the group’s eligible directors, employees and persons who have contributed to the success of the group,” it said.

It added that 31.7 million shares would be made available by way of private placements to selected Bumiputera investors approved by the Ministry of International Trade and Industry. 

“The balance of 26.1 million new shares, together with 27 million existing offer-for-sale shares, will be placed out to selected investors by way of private placements,” it said.

Managing director Wee Eng Kong said the listing exercise is a natural progression for the company to grow its business, as the exercise would aid in its efforts to strengthen its construction capabilities with the new funds raised.

“The listing would also help us improve our market positioning to capture opportunities in the construction of public and private projects, including hospitals and high-rise buildings,” he said.

Tuju Setia is a Grade G7 contractor registered with the Construction Industry Development Board (CIDB).

-- BERNAMA

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