Veteran building contractor Inta Bina Group Bhd plans to establish a footprint in the affordable housing segment after listing.
The Company is expected to take a more active approach in tendering for affordable housing projects in the Klang Valley from private housing developers under the federal and state affordable housing scheme.
Paul Lim Ooi Joo, the Managing Director of Inta Bina Group believes that the affordable housing segment has growth potential and is receiving favourable attention from the Malaysian Government and gaining traction in the local property market.
“Our strategy to constructing affordable housing projects efficiently is through the usage of aluminium system formwork. Aluminium system formwork is suitable for mass construction of buildings with repetitive design. As such, our proposed acquisition of the additional aluminium system formwork can support our plan to penetrate into the affordable housing segment,” he added.
Inta Bina Group will be spending RM5.0 million out of RM26.76 million raised from the initial public offering (“IPO”) exercise for capital expenditure to purchase various machineries and equipment as well as to replace the fully depreciated equipment within 12 to 24 months.
Speaking to reporters at the Press Conference after Inta Bina Group’s Listing Ceremony on the ACE Market of Bursa Malaysia Securities Bhd this morning, Lim said the growth trend in the real estate construction industry is expected to mirror closely to the growth trend in the construction industry.
According to the Independent Market Research report by Protégé Associate Sdn Bhd, the market size (revenue) of the real estate construction market in Malaysia stood at RM27.55 billion in 2016 and is expected to grow at a compounded annual growth rate 4.9% from 2017 to 2021.
To mark the special occasion, Lim and Teo Hock Choon, Deputy Managing Director of Inta Bina Group, officiated the Listing Ceremony by hitting the gong together with the Company’s Board of Directors.
Under the listing exercise, Inta Bina Group raised RM26.76 million from its Public Issue of 107.05 million new shares at an issue price of RM0.25 per share of which 26.76 million new shares were made available to the Malaysian public via balloting; 20.01 million new shares for its eligible Directors and employees; 53.53 million new shares reserved for private placement to selected Bumiputra investors approved by MITI while the remaining 6.75 million new shares were earmarked for private placement to selected investors.
As part of its listing exercise, the existing shareholders of the Company also made an offer for sale of 26.76 million shares to selected investors by way of private placement.
Of the total IPO proceeds, RM5.0 million (18.68%) will be used mainly for capital expenditure to purchase various machineries and equipment as well as to replace the fully depreciated equipment; RM9.0 million (33.63%) to repay bank borrowings; RM9.56 million (35.73%) for general working capital requirements which will be used to finance Inta Bina Group’s day-to-day operations for its on-going and future projects while the remaining RM3.20 million (11.96%) to be used to defray listing expenses for the IPO.
Based on the enlarged share capital of 535.26 million shares and the IPO price or RM0.25 per share, the Company’s market capitalisation is approximately RM133.81 million upon listing.