Sarawak builder Hartanah Kenyalang files for ACE Market IPO

• Hartanah Kenyalang is involved in construction services targeting institutional buildings such as schools and other public buildings, as well as infrastructure focusing on bridges and roads. The company has seven jobs on hand, worth RM177.3 million, that will provide earnings up to 2026.

KUALA LUMPUR (Nov 13): Hartanah Kenyalang Bhd, a Sarawak-based construction services firm, has filed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise funds for expansion and to finance existing operations.

On its shopping list are six new excavators to replace some of its older assets and increase its capacity to take on more jobs, the company said in its draft prospectus. Hartanah Kenyalang also plans to use some of the proceeds for computer hardware and software to expand into design services, it said.

“The design and build services are where our group will be the single point responsibility party to oversee and manage all works, from design and development, to construction of a project,” the company said.

Hartanah Kenyalang is involved in construction services targeting institutional buildings such as schools and other public buildings, as well as infrastructure focusing on bridges and roads. The company has seven jobs on hand, worth RM177.3 million, that will provide earnings up to 2026.

The planned IPO comes at a time of rising federal allocation for Sarawak. Under Budget 2025, the state is expected to receive RM5.9 billion for development, as well as another RM600 million in special grant.

In the financial year ended Oct 31, 2023, the company made net profit of RM5.7 million, on the back of RM71.2 million in revenue.

The proposed IPO involves a public issue of 120.9 million new shares and an offer for sale of 77.5 million existing shares, at a price to be determined later. All in all, the listing offers investors up to a 32% stake in the company.

Proceeds from the sale of new shares will also be used to meet the growing project working capital, mainly to pay sub-contractors and suppliers. The company has also set aside some of the funds to repay some of its bank borrowings. The rest will be used to defray listing expenses.

Meanwhile, any money raised from the offer of existing shares will accrue entirely to co-founders Seah Boon Tiat and Seah Boon Kee, as well as to chief operating officer Tony Cheok, strategic investor Peter Chai, and minority shareholder Yeo Kwang Min.

Boon Tiat is also the managing director, while his elder brother Boon Kee is the company’s deputy managing director. Both are trained as civil engineers.

TA Securities is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter.

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