Lim Seong Hai Capital proposes RM168 mil share sale for listing transfer

• The share sale involves the issuance of 132 million new shares and an offer for sale of up to 59 million existing shares, the company said in an exchange filing.

KUALA LUMPUR: Construction company Lim Seong Hai Capital Bhd (LSH) said on Wednesday it is proposing a public offering which could potentially raise RM168.08 million as part of its listing transfer to the ACE Market from the LEAP Market.

The share sale involves the issuance of 132 million new shares and an offer for sale of up to 59 million existing shares, the company said in an exchange filing.

The retail tranche consists of 29.3 million shares for the public and eligible persons while the institutional portion will have 102.66 million new shares and 59 million existing shares.

Based on an illustrative price of 88 sen per share, LSH will raise RM116.16 million which will go towards construction projects and repayment of debt, it said. The company, which also develops properties, has three projects worth nearly RM1.7 billion in gross development value, LSH noted.

Further, LSH has an outstanding order book of about RM501.26 million across nine infrastructure construction and civil engineering projects. Cash from the public offering will ease the company’s cash flow when carrying out its construction activities, it said.

The offer for sale meanwhile will raise gross proceeds of up to RM51.92 million which will accrue entirely to the selling shareholders, including independent director Tan Sri Lim Keng Cheng and executive chairman Datuk Lim Keng Guan.

LSH did not raise any proceeds during its listing on the LEAP Market on July 30, 2021. The company however raised over RM4.6 million from the pre-listing investors through the issuance of 35.86 million shares at 13 sen apiece.

The proposed public offering is expected to be completed in the fourth quarter of 2024 alongside the transfer of listing, LSH said.

AmInvestment Bank Bhd is the principal adviser and sponsor to the company for its ACE Market listing transfer.

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