|  | 

Property News

Construction engineering solutions group Plytec seeks ACE Market listing to raise RM37.1m

KUALA LUMPUR (Oct 24): ACE Market-bound Plytec Holding Bhd, which is set to be listed on Nov 15, is seeking to raise RM37.1 million via the issuance of about 106.1 million new shares at 35 sen per share via its initial public offering (IPO) exercise.
The construction engineering solutions and services provider is set to have a market capitalisation of RM212.1 million upon listing, with an enlarged share capital of 606 million shares.
This values the company at 1.12 times its price-earnings ratio, based on a net profit of RM42.3 million for the financial year ended Dec 31, 2022 (FY2022).
Of the total proceeds of RM37.1 million, Plytec said that RM9 million will be allocated for the repayment of borrowings, followed by RM8 million for its capital expenditure.
Meanwhile, another RM7.8 million will be allocated for the construction of factories and centralised labour accommodations on Plytec’s Olak Lempit Land, which is expected to be completed by the third quarter of 2024 (3Q2024).
The group will also allocate RM6.3 million for its working capital, RM4 million will be used to cover estimated listing expenses and the remaining RM2 million is set aside to purchase software systems and hardware.
Applications for the IPO, which is now open, will close at 5pm on Oct 31. KAF Investment Bank Bhd is the principal adviser, sponsor, managing underwriter, joint underwriter and joint placement agent for the IPO, while Kenanga Investment Bank Bhd is the joint underwriter and joint placement agent.
IPO a stepping stone to strengthen CME segment
Plytec group managing director cum chief executive officer Yang Kian Lock said the group intends to strengthen its position as a construction method engineering (CME) solutions provider by increasing its capacity to provide temporary work equipment — which includes self-climbing platform, aluminium platform, shoring system and green framework that supports building structures during construction — following the IPO.
“Our aim is to further strengthen our position as a construction method engineering solutions and digital design engineering solutions provider with a focus on the adoption of digital smart technology,” Yang said during the group’s prospectus launch on Tuesday.
Besides CME solutions, Plytec has three other business segments, namely: trading and distribution of building materials, digital design and engineering (DDE) solutions, and prefabricated construction (PC) solutions.
As of Aug 31, the group’s outstanding orders stood at RM75.53 million, which are to be fulfilled by up to FY2024.
The group plans to expand its presence, mainly for its CME solutions segment, in the Asean market as it recognises the immense potential that the segment offers.
“We have a distributor in Myanmar and we are trying to establish (a link) to Vietnam and Indonesia because the strategy [is to expand to Southeast Asia market],” the group chief operating officer Louis Tay Chee Siong told reporters.
On the impact of the weak local currency on its business, particularly concerning material costs, Yang said the group is primarily sourcing its products from China, which acts as a natural buffer against the stronger US dollar.
“In terms of raw material prices, I do see it is quite stable as a lot of our products are from China. Hence, we are not much impacted by the (stronger) US dollar,” he assured.
Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!

Source: EdgeProp.my

Latest News


Your email address will not be published. Required fields are marked *

Name *

Email *