Kuala Lumpur, March 27 – Building contractor Inta Bina Group Berhad has received Bursa Malaysia Securities Berhad’s approval for its initial public offering (“IPO”) to list on the ACE Market of Bursa Securities.

The proposed IPO will involve the issuance of 107.05 million new shares in Inta Bina Group representing 20% of the enlarged share capital.

Of the 107.05 million new shares, 26.76 million new shares will be made available to the Malaysian public via balloting; 20.01 million new shares for its eligible Directors and employees; 53.53 million new shares have been reserved for private placement to selected Bumiputra investors approved by MITI while the remaining 6.75 million new shares are earmarked for private placement to selected investors.

As part of its listing exercise, the existing shareholders of the Company will also make an offer for sale of 26.76 million shares to selected investors by way of private placement.

Paul Lim Ooi Joo, Managing Director of Inta Bina Group said the approval for the listing is a significant milestone in the Company’s journey to become a listed entity.

“The IPO will facilitate Inta Bina Group with greater financial flexibility to pursue future growth opportunities and enhance our Group’s reputation in the marketing of our construction services to expand our customer base in Malaysia, and to retain and attract new, skilled employees in the construction industry,” he added. 

Proceeds from the IPO will be used primarily for general working capital requirements which will be used to finance Inta Bina Group day-to-day operations including the working capital requirements for its future projects. Part of the proceeds will also be used for capital expenditure to purchase various machineries and equipment to support the Company’s business expansion and to replace the fully depreciated equipment; repayment of bank borrowings and to defray estimated listing expenses for the IPO.

Inta Bina Group is scheduled to be listed on the ACE Market of Bursa Securities by second quarter of 2017.

M&A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.