KUALA LUMPUR (Aug 1): Malaysia-based construction services company, BGMC International Ltd (BGMC) is set to list on the Main Board of the Hong Kong Stock Exchange (HKSE) on Aug 9.

In a statement July 31, BGMC said it plans to offer a total of 450 million shares at an offer price from 60 HK cents to 90 HK cents to raise an estimated HK$270 million to HK$405 million (RM148 million to RM222 million).

BGMC provides a wide range of construction services and capable of undertaking public-private partnership (PPP) projects based on the build, lease, maintain and transfer (BLMT) model, allowing it to generate long-term recurring cashflow

Its prominent customers include Sime Darby Group, Tenaga Nasional Berhad and MRCB.

BGMC said upon listing, it plans to adopt a dividend policy of declaring and paying dividends of no less than 30% of its net profit available for distribution to shareholders in a financial year.

The Hong Kong public offering started at 9am on July 31 and will end at noon on Aug 3.

BGMC said the final offer price and allotment results will be announced the following week on Aug 8.

BGMC’s management team includes chairman and executive director Tan Sri Barry Goh; vice-chairman and executive director Datuk Mohd Ariffin Mohd Arif; executive director and CEO Datuk Michael Teh; while former Malaysian Transport Minister Tan Sri Kong Cho Ha is an independent non-executive director of the company.

Going forward, BGMC said it plans to increase its share of the construction market in Malaysia by tendering for large scale and higher profit construction projects in the country.

Furthermore, the company said it plans to identify opportunities to diversify its construction services, making relevant investments by way of collaboration, partnership agreements or merger and acquisition agreements.

It also intends to undertake more BLMT or PPP projects in Malaysia and overseas, especially in the Asean Region, to ensure it has long-term and steady cash inflow.

BGMC said it also intends to acquire more advanced machinery and equipment instead of relying on hiring or leasing for its construction projects, which will help reduce direct costs in the long run. — theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.

SHARE
RELATED POSTS
  1. MRCB's 4Q profit jumps to RM80m on disposal gains, from RM13m a year ago
  2. TH Properties and MRCB launch Padang Residences in RM3.09b Kota Semarak mixed development in KL
  3. Updated: IJM climbs to five-year high after joining consortium to bid for KL-S'pore HSR job