Hartanah Kenyalang launches IPO Prospectus
PRESS STATEMENT
New issue of 120.9 million new shares representing 19.5% of the enlarged issued share capital
- Hartanah Kenyalang Berhad (“Hartanah Kenyalang” or “Company”) and its wholly owned subsidiary (collectively, the “Group”) targets to raise RM19.3 million from the Initial Public Offering (“IPO”)
- Hartanah Kenyalang is slated for listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 9 June 2025
Kuching, Sarawak, Malaysia, 30 April 2025 – A building and infrastructure construction centric company, Hartanah Kenyalang today unveiled the prospectus for its IPO at Sheraton Kuching Hotel, Sarawak. This is in conjunction with the Company’s listing of its entire enlarged issued share capital of 620.0 million ordinary shares on the ACE Market of Bursa Securities, scheduled for 9 June 2025. TA Securities Holdings Berhad (“TA Securities”) is Hartanah Kenyalang’s Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent.
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.
Based on the IPO price of RM0.16 per share, the IPO exercise is expected to raise RM19.3 million for Hartanah Kenyalang. The public issue of 31.0 million new shares available for application by the Malaysian public, opens today, 30 April 2025 at 10.00 a.m., and application will close on Tuesday, 27 May 2025 at 5.00 p.m.
The IPO proceeds of RM19.3 million will be fully allocated as follows:
- RM3.0 million (15.5%) will be used for the purchase of new machineries and IT related hardware and software;
- RM10.5 million (54.2%) has been budgeted for project working capital;
- RM2.10 million (10.9%) for repayment of bank borrowings; and
- RM3.8 million (19.4%) will be used to defray estimated listing expenses.
Based on the enlarged share capital of 620.0 million ordinary shares and IPO price of RM0.16 per share, Hartanah Kenyalang is expected to have an indicative market capitalisation of RM99.2 million.
Hartanah Kenyalang has recorded strong financial growth, with revenue increasing from RM34.1 million for financial year ended 31 October 2021 to RM127.6 million in financial year ended 31 October 2024, which grew at a compounded annual growth rate (“CAGR”) of 55% per annum. During the same period, profit after tax increased at an impressive CAGR of 24% per annum, growing from RM4.8 million to RM9.2 million.
Hartanah Kenyalang’s Managing Director, Mr Seah Boon Tiat, commented,
“The Group has experienced significant growth over the past 11 years of operating history in the construction industry in Sarawak. Today, we are filled with excitement as we embark on the next phase of our corporate journey, that is, the dream of transitioning Hartanah Kenyalang into a public listed company on the ACE Market which is soon to become a reality.”
“Under the Sarawak Budget 2025, the state government has allocated RM10.9 billion for development expenditure and the state will continue to prioritise the infrastructure development in Sarawak. This is vital role in boosting the economic growth of the state and to enhance connectivity in Sarawak. In addition, a sum of approximately RM1 billion has been specifically allocated for the construction of various roads and bridges to improve the land infrastructure in Sarawak under the state’s 2025 Development Budget.”
“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 in order to increase our capacity and productivity. In addition, we also plan to expand into offering design and build services for our building construction services segments and infrastructure construction services segments by investing in Building Information Modelling system or BIM. BIM is a technology that can digitise various aspects of a construction project, enabling seamless collaboration among project owners, architects, consultants, engineers and contractors by using a 3-dimensional model.”
“As at 30 April 2025, we have tendered for various building and infrastructure construction projects with an aggregate contract value of RM451 million, of which RM311 million is in respect of a design and build construction project. By expanding our design and build services, we are confident that this strategic move will enable us to climb up the construction industry’s value chain and to increase our overall competitiveness in the marketplace.”
(From left) (1) TA Securities Vice President of Corporate Finance, Mr. David Chan Tze Kwang, (2) Hartanah Kenyalang Berhad Non-Executive Director, Mr. Peter Chai Mui Seng, (3) Hartanah Kenyalang Berhad Managing Director, Mr. Seah Boon Tiat, (4) Datuk Ir. Aidel Lariwoo, Sarawak Deputy Minister for Infrastructure and Port Development, (5) Hartanah Kenyalang Berhad Independent Non-Executive Chairperson, Datin Josephine Anak Hilary Dom, (6) Hartanah Kenyalang Berhad Deputy Managing Director, Mr. Seah Boon Kee, (7) Hartanah Kenyalang Berhad Executive Director cum Chief Operating Officer, Mr. Tony Cheok Liam Fock, and (8) TA Securities Head of Corporate Finance, Mr. Ku Mun Fong.
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