KUALA LUMPUR (May 31): Vestland Bhd, which is primarily involved in the construction of residential and non-residential buildings, is seeking listing on Bursa Malaysia’s ACE Market.
The company aims to raise funds for the acquisition or refinancing of loans for the acquisition of a new head office, performance guarantees or cash deposits for construction projects, as well as working capital. and listing expenses.
The group’s draft initial public offering (IPO) prospectus published on Bursa Malaysia on May 26 also said that 170 million new shares will be issued under the public offering.
Of these, 47 million new shares will be made available to the Malaysian public.
An additional 27.75 million shares will be made available to directors, employees and eligible persons who have contributed to the success of Vestland and its wholly-owned subsidiary Vestland Resources.
And 95 million new shares will be made available through private placement to bumiputera investors identified and approved by the Ministry of International Trade and Industry (MITI).
In addition, Vestland is offering for sale 70.8 million existing shares by way of private placement, including 23 million shares to bumiputera investors identified and approved by MITI and 47.8 million shares to selected investors. .
For the financial year ending 2021 (FY21), Vestland recorded a net profit of RM10.64m, compared to RM7m in FY20 and RM7.17m in FY19. The group said its main source of income comes from building construction activities in Malaysia.
Its business activities are the construction of residential buildings, including apartments and single-family houses, as well as non-residential buildings, including commercial buildings and mixed-use offices, industrial buildings, service apartments, hostels and hotels.
Vestland also has a small share of business in the civil works segment.
According to the group’s draft prospectus, Vestland said it had an established track record of 11 years as a building contractor in the construction industry, having started operations in 2011.
“For the year under review and up to the last Prospectus Date (LPD), we have completed 15 construction projects with a collective contract value of RM633.21 million. As at LPD, we have four ongoing construction projects, six ongoing design and construction projects as well as four civil works projects,” the group said.
Vestland added that his current projects will be able to support him in the short or medium term. The total value of the group’s outstanding order book is approximately RM819.53 million.
AmInvestment Bank Bhd is the lead adviser, sponsor, placement agent and underwriter of the IPO.
Vestland’s current shareholders are its Group Managing Director Datuk Liew Foo Heen (85%) and Group Executive Director Wong Sai Kit (15%).
After the IPO, Liew’s stake will be reduced to 63.33% while Wong will have 11.17%.
Edited by Kamarul Azhar.
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