Hartanah Obtained Approval From Bursa Malaysia for Listing
PRESS STATEMENT
HARTANAH KENYALANG BERHAD OBTAINED APPROVAL FROM BURSA MALAYSIA SECURITIES BERHAD (“BURSA MALAYSIA”) TO LIST ON THE ACE MARKET OF BURSA MALAYSIA
New issue of 120.90 million new shares representing 19.5% of the enlarged issued share capital
Offer for sale of 77.50 million existing shares representing 12.5% of the enlarged issued share capital
Sarawak, Malaysia, 18 February 2025 – Bursa Malaysia had via its letter issued to TA Securities Holdings Bhd, the principal adviser, sponsor, sole underwriter and sole placement agent of Hartanah Kenyalang Berhad (“Hartanah” or “the Company”), approved Hartanah’s proposed initial public offering (IPO) and proposed listing on the ACE Market of Bursa Malaysia. Hartanah targets to list the entire enlarged issued share capital of 620 million ordinary shares on the ACE Market of Bursa Malaysia by the second quarter of 2024.
Hartanah is principally an investment holding company and its subsidiary (“the Group”) are involved in the 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.
Amongst different ongoing construction projects undertaking by our Group in Sarawak state, including construction of the State Archive building in Kuching; construction of school buildings and related facilities for Yayasan International School in Sibu and in Kuching respectively; construction of 3 government school buildings and related facilities, such as SK Tambay in Kota Samarahan, SK Kujang Mawang in Serian and SMK Tatau School in Bintulu; construction of a bridge as part of a rescue project for Sebauh Bridge in Bintulu, Sarawak. Our Group also expanded our construction services to our neighbouring state in East Malaysia while we are involved in construction of Sg. Padas Bridge in Tenom, Sabah.
Hartanah’s IPO entails the public offering of 198.40 million ordinary shares comprising a public issue of 120.90 million new shares and an offer for sale of 77.50 million existing shares which collectively represent 32.0% of the Group’s enlarged issued share capital of 620 million ordinary shares.
Of the 120.90 million new shares, 31.00 million new shares will be made available for application by the Malaysian public; and 18.60 million new shares will be made available for application by eligible directors and employees of the Group, and by persons who have contributed to the success of the Group.
The remaining 71.30 million new shares will be allocated for private placement to selected investors. There is also an offer for sale of 77.50 million existing shares which will be allocated for private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Hartanah’s Non-Independent Executive Director and Managing Director, Mr. Seah Boon Tiat, commented,
“We are delighted that Bursa Malaysia has given their approval for us to implement our proposed IPO and proposed listing after having diligently assessed our application. The approval takes us a step closer to our IPO journey to become a public listed entity on the ACE Market of Bursa Malaysia. This comes at an opportune time as we are ready to take advantage of the vast development opportunities in the Malaysia’s construction industry especially in Sarawak state.”
“On 14 February 2025, Bank Negara Malaysia announced the Malaysian economy expanded by 5% in the 4Q 2024 (3Q 2024: 5.4%), driven mainly by domestic demand. More importantly, the construction sector continued to record double-digit growth with robust activities in the residential, non-residential and special trade subsectors. For the year as a whole, the Malaysian economy grew by 5.1% in 2024 (2023: 3.6%). Looking ahead to 2025, Malaysia’s economic growth is projected to range between 4.5% and 5.5% by the Ministry of Finance, Malaysia.”
“In addition, the Sarawak Budget 2025 reviewed that for 2024, the Sarawak Government has approved an allocation of RM9.0 billion, with a focus on enhancing connectivity, improving citizens’ well-being and stimulating economic growth. Complementing these efforts, the Federal Government has allocated RM5.8 billion for development in Sarawak, further supporting key infrastructure development and reinforcing economic expansion throughout the year. Looking forward to 2025, economic growth in Sarawak is expected to range between 5.0% and 6.0%.”
“Against the backdrop of growth prospect in Malaysia construction sector, we plan to utilise parts of the IPO proceeds that Hartanah is expecting to raise from the Company’s IPO exercise to purchase six new excavators to replace some of the older excavators to increase our capacity and our construction productivity; to purchase IT related hardware as well as subscriptions for IT software and cloud storage services to improve our administrative efficiency and project management ability. We also aim to invest in Building Information Modelling system to facilitate our plan to expand into offering design and build services for our clients.”
INFORMATION ON HARTANAH KENYALANG BERHAD
Our Company is an investment holding company, while our wholly owned subsidiary, namely 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 providing infrastructure construction services, with a focus on bridges and roads. We have 11 years of operating history in the construction industry in Malaysia since commencing business operations in 2010.
Amongst different construction projects completed by our Group during the past four financial years from FYE2020 to FYE2024 include the construction of government school buildings and related facilities, such as construction of six Sekolah Daif at various locations in Sarawak; construction of commercial shophouses for the Samariang Square project in Petrajaya, Kuching; infrastructure works for the Pan Borneo Highway from Serian to Pantu Junction; construction of commercial shophouses for the Matang Parade project in Kuching; and provision of piling works for the Kuching International Airport Hanger project in Kuching, Sarawak.
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