From left: Azam Jaya Bhd executive director Datuk Lo Vun Che @ Jessica, Azam Jaya chairman Tan Sri Joseph Lo @ Lo Tain Foh, Azam Jaya managing director Datuk Jonathan Lo Chaw Loong, Inter-Pacific Securities Sdn Bhd head of capital markets / corporate finance Anuar Omar and Inter-Pacific senior advisor, capital markets & corporate finance Denis Lim Seng Huat.
KUALA LUMPUR: Sabah-based major road infrastructure construction company Azam Jaya Bhd has signed an underwriting agreement with Inter-Pacific Securities Sdn Bhd (Interpac) in conjunction with its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.
Specialising in road infrastructure construction in Sabah, Azam Jaya has over 30 years of experience and has successfully completed more than 50 projects, including highways, bridges, and tunnels.
Currently, the group has nine ongoing construction projects, all awarded by the Ministry of Works and Jabatan Kerja Raya Sabah. These projects include the Pan Borneo Highway, upgrades to roads in Kota Kinabalu, and various rural road projects.
As at Aug 31, these ongoing construction projects have an unbilled contract value (order book) of approximately RM1.45bil.
Azam Jaya’s IPO includes the public issuance of 78.8 million new shares, making up 15.8% of its total share capital, and the sale of 50 million existing shares, representing 10% of its share capital.
A total of 25 million new shares will be available to the Malaysian public through a ballot. Additionally, 10 million shares will be allocated to eligible directors, employees, and contributors to the group’s success.
The remaining 43.8 million new shares and 50 million existing shares will be offered to institutional and selected investors through private placement.
Pursuant to the underwriting agreement, Interpac will underwrite 35 million issue shares made available to the Malaysian public and pink form allocations.
Azam Jaya executive director Datuk Lo Vun Che @ Jessica said the listing listing will unlock greater resources and financial flexibility, enabling the group to further enhance its construction capabilities and solidify position as one of the major road infrastructure players in Sabah.
“Infrastructure development is vital to unlocking economic opportunities in Sabah by enhancing connectivity and facilitating trade expansion. The ongoing construction of the Pan Borneo Highway is poised to significantly boost Sabah’s infrastructure landscape.
“Given our involvement in the project, we are optimistic about the potential to participate further in future phases of the Pan Borneo Highway in Sabah. In addition, we will be tendering for other large-scale road infrastructure and rural road projects as efforts to upgrade and construct roads and bridges in Sabah intensify,” she said in a statement.
The group also aims to expand its fleet of machinery and equipment to rely less on subcontractors, helping to better manage project timelines and quality.
Azam Jaya is scheduled to be listed on the Main Market in November 2024, with Interpac as the principal adviser, sole underwriter and sole placement agent for the IPO exercise.
