Azam Jaya to raise funds via Main Market listing

KUALA LUMPUR: Sabah-based construction firm Azam Jaya Bhd is planning to list on the Main Market of Bursa Malaysia, with the proceeds raised used to partly reduce its borrowings.

The company’s total borrowings stood at about RM162.54 million as at May 31.

According to Azam Jaya’s draft prospectus posted on the Securities Commission website, the company plans to use part of the proceeds to partially repay a revolving credit line with an outstanding amount of RM49.98 million as at May 31.

The revolving credit line was obtained by the company’s subsidiary, Pembinaan Azam Jaya Sdn Bhd, in 2018 to finance the working capital required for the execution of government construction projects.

Azam Jaya said a portion of the proceeds would be used to fund ongoing construction projects and bid for additional road infrastructure contracts.

The proceeds would also be used to purchase more construction machinery and equipment.

It also plans to invest in technological upgrades, including autonomous vehicle control modules for existing vehicles and handheld augmented reality surveying equipment.

“We intend to acquire construction machinery and equipment such as excavators, dump trucks, motor graders and bulldozers.

“This will improve our operational efficiency as we can use our own fleet to undertake construction works, as opposed to relying on external subcontractors,” it added.

Azam Jaya’s initial public offering involves 128.8 million new shares, comprising the public issue of 78.8 million new shares and offer for sale of 50 million existing shares by way of private placement to institutional and selected investors.