Hartanah Kenyalang signed Underwriting Agreement
HARTANAH KENYALANG BERHAD SIGNED UNDERWRITING AGREEMENT WITH TA SECURITIES HOLDINGS BERHAD (“TA SECURITIES”)
- New issue of 120.9 million new ordinary shares in Hartanah Kenyalang Berhad (“Hartanah Kenyalang” or “Company”) representing 19.5% of the enlarged issued share capital
- TA Securities to underwrite 31.0 million new shares to be made available for application by the Malaysian public
- TA Securities to underwrite 18.6 million new shares to be made available for application by the eligible directors, employees and persons who have contributed to the success of Hartanah Kenyalang and its subsidiary (collectively, the “Group”)
Sarawak, Malaysia, 11 April 2025 – Hartanah Kenyalang has signed an underwriting agreement with TA Securities to underwrite a total of 49.6 million new shares. TA Securities is Hartanah Kenyalang’s Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for the Company’s initial public offering (“IPO”) and listing on Kenyalang the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”). Hartanah targets to list its entire enlarged issued share capital of 620.0 million ordinary shares on the ACE Market of Bursa Malaysia by the second quarter of 2025.
Hartanah Kenyalang is principally an investment holding company, while its subsidiary, Hartanah Construction Sdn Bhd, is involved in building construction services, with a focus on institutional buildings such as schools and other public buildings, and other non-residential buildings; as well as infrastructure construction services, with a focus on bridges and roads.
Hartanah Kenyalang’s IPO entails the public offering of 198.4 million ordinary shares comprising a public issue of 120.9 million new shares and an offer for sale of 77.5 million existing shares which collectively represent 32.0% of the Company’s enlarged issued share capital of 620.0 million ordinary shares.
Of the 120.9 million new shares, 31.0 million new shares will be made available for application by the Malaysian public, and 18.6 million new shares will be made available for application by eligible directors and employees of the Group, and persons who have contributed to the success of the Group.
The remaining 71.3 million new shares will be allocated for private placement to selected investors. There is also an offer for sale of 77.5 million existing shares which will be allocated for private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Mr. Ku Mun Fong, Head of Corporate Finance, TA Securities commented,
“We are pleased to be a part of Hartanah Kenyalang’s IPO and listing on the ACE Market of Bursa Malaysia. This underwriting agreement underscores TA Securities’ commitment to be a part of Hartanah Kenyalang’s growth journey. The IPO represents a significant milestone for Hartanah Kenyalang.”
“The Group has a competitive edge and market presence in Sarawak with the majority of the Group’s revenue generated from construction projects commissioned by the Sarawak state government and the Federal government for the construction of schools and public buildings, as well as bridges and roads. Thus, the continuing spending by both the Sarawak state and Federal governments as well as quasi-government entities is expected to contribute positively to the business operations and financial performance of the Group.”
“We believe Hartanah Kenyalang has a solid foundation for its future growth. We look forward to continuing our relationship with Hartanah Kenyalang in its next stage of growth while acting as the Company’s SPonsor after listing.”
Hartanah’s Managing Director, Mr Seah Boon Tiat, commented,
“The signing of the underwriting agreement with TA Securities not only reinforces their confidence in us but also takes us a step closer to our IPO. This comes at an opportune time as we are ready to take advantage of the vast opportunities in the construction industry in Sarawak”
“Under the Sarawak Budget 2025, the Sarawak state will continue to prioritise the development of essential infrastructure and services to enhance connectivity and accessibility. The infrastructure development in Sarawak, which comprises the construction of roads and bridges, plays a vital role in boosting the economic growth of Sarawak. For 2025, the state government has allocated RM10.9 billion for development expenditure, of which a sum of approximately RM1 billion has been allocated to implement and complete the various road and bridge projects.”
“Against the backdrop of growth prospect in Sarawak’s construction sector, we plan to utilise part of the proceeds from IPO exercise to purchase six new excavators to replace some of our older excavators as well as increase our capacity and productivity for our construction works. In addition, we also plan to expand into offering design and
build services for both our building construction and infrastructure construction services segments by investing in Building Information Modelling system where this technology digitises various aspects of a construction project by using a 3-dimensional model.”
(From left) Hartanah Kenyalang Berhad Non-Executive Director Mr. Peter Chai Mui Seng, Hartanah Kenyalang Berhad Deputy Managing Director, Mr. Seah Boon Kee, Hartanah Kenyalang Berhad Managing Director, Mr. Seah Boon Tiat, TA Securities Head of Corporate Finance Mr. Ku Mun Fong, TA Securities Vice President of Corporate Finance, Mr David Chan Tze Kwang and Hartanah Kenyalang Berhad Executive Director cum Chief Operating Officer, Mr. Tony Cheok Liam Fock.
Mr. Seah Boon Tiat, Managing Director of Hartanah Kenyalang the underwriting agreement on behalf of Hartanah Kenyalang Berhad, while TA was signed by its Head of Corporate Finance, Mr. Ku Mun (third from left) signed Securities Holdings Berhad Fong (fourth from left).
INFORMATION ON HARTANAH KENYALANG BERHAD
The Company is an investment holding company, while its subsidiary, Hartanah Construction Sdn Bhd, is principally involved in providing building construction services, with a focus on institutional buildings such as schools and other public buildings, and other non-residential buildings; and infrastructure construction services, with a focus on bridges and roads. The Group has 11 years of operating history in the construction industry in Sarawak since commencing business operations in 2010.
Amongst the ongoing construction projects currently undertaken by the Group, include the construction of the State Archive building in Kuching; construction of school buildings and related facilities for Yayasan International School in Sibu and Kuching; construction of 2 dilapidated school buildings and related facilities, namely SK Tambay in Kota Samarahan and SK Kujang Mawang in Serian; as well as the construction of the Sebauh Bridge in Bintulu as a rescue contractor. The Group has also undertaken a construction project in the neighbouring state of Sabah where the Group is involved in the construction of Sg. Padas Bridge in Tenom.
Amongst the construction projects completed by the Group in the past include construction of government school buildings and related facilities, such as the construction of 6 dilapidated schools at various locations in Sarawak; construction of commercial shophouses for Samariang Square project in Petrajaya, Kuching; infrastructure works for the Pan Borneo Highway from Serian to Pantu Junction in Sarawak; construction of commercial shophouses at Jalan Matang, Kuching; and provision of piling works for the Kuching International Airport Hanger in Kuching.
Issued by: Maxamis Consultancy Services on behalf of Hartanah Kenyalang Berhad
For further media enquiries, kindly contact:
Mr Tan Yap Seng
Appointed Investor Relations and Media Relations Consultant
Telephone Number: +6016 – 328 1828
Email: yapseng@maxamis.com.my
Or
Mr Desmond Foo Jin Sen
Chief Financial Officer
Hartanah Kenyalang Berhad
Email: desmondfoo@hartanahgrp.com.my
Telephone Number: +6013 – 948 9069
Company Address:
Lot 7070 & 7071, Section 64, Jalan Pending 93450 Kuching, Sarawak, Malaysia
INFORMATION ON TA SECURITIES HOLDINGS BERHAD
TA Securities Holdings Berhad (“TA Securities”) was incorporated in Malaysia on 1 July 1973 and is a wholly-owned subsidiary of TA Enterprise Berhad. Currently, the company has an issued and paid-up share capital of RM350 million.
TA Securities is a stockbroking company licensed by Securities Commission Malaysia under the Capital Markets and Services Act 2007. It is also a Participating Organisation of Bursa Malaysia and its principal office is in Menara TA One, Kuala Lumpur with branches in Ipoh, Sibu, Kota Bharu, Subang Jaya, Damansara Utama, Melaka, Segamat, Penang, Johor Bahru and Bangsar South.
For more information, please visit www.tasecurities.com.my
Company Address:
14th Floor, Menara TA One, 22 Jalan P. Ramlee, 50250, Kuala Lumpur, Malaysia
Telephone Number: +603 – 2072 1277