NESTCON SIGNS UNDERWRITING AGREEMENT WITH M&A FOR UPCOMING IPO

KUALA LUMPUR, May 3 -- Building and infrastructure construction services provider Nestcon Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Nestcon’s IPO exercise entails a public issue of 161 million new shares and an offer for sale of 32.2 million existing shares by way of private placement.

Under the agreement, M&A Securities will underwrite 64.4 million of the 161 million new shares, comprising portions to be made available for the Malaysian public as well as eligible directors, employees and persons who have contributed to the success of the group.

Group managing director Datuk Dr Lim Jee Gin said the signing of this underwriting agreement represented the last mile of its journey in becoming a public listed entity.

“This IPO exercise brings not only capital funding but also other indirect benefits such as an enhanced brand presence as well as the flexibility to tap into the capital market in the future,” he said in a statement.

Lim said that Nestcon would embrace mass production principles via the adoption of an Industrialised Building System (IBS) and would allocate a part of the IPO proceeds to establish its own on-site IBS facility that will expedite project delivery time and reduce reliance on foreign workers while simultaneously improve the quality of work.

“Besides that, we are also eyeing larger civil engineering and infrastructure projects such as highways, transportation infrastructure, various renewable energy projects and so forth.

“To do so, we intend to strengthen our machineries and equipment count as well as readying a sizeable sum of working capital as performance bonds in anticipation of these large-scale projects,” he added.

Nestcon is scheduled to be listed on the ACE Market of Bursa Securities by June 2021, with M&A Securities as the adviser, sponsor, underwriter and placement agent for the IPO exercise.

-- BERNAMA