CONSTRUCTION-based Haily Group Bhd debuted on the ACE Market of Bursa Malaysia today with an 11 sen premium or 16.18% higher than its initial public offering (IPO) price of 68 sen despite a see-sawing market sentiment.
Haily opened at 79 sen or an 11 sen gain with the first traded volume recorded at 7.19 million shares. At 12.01pm, Haily was up 8 sen or 11.76% to 76 sen with 83.97 million shares traded, thus valuing the company at RM111 mil.
Haily is principally a main contractor in of residential and non-residential buildings in the Southern region of Peninsular Malaysia – particularly Johor –as well as is also involved in the provision of rental of construction machinery.
The company’s IPO involved a public issue of 30 million shares which raised gross proceeds of RM20.4 mil.
Of the 30.00 million shares, 8.92 million shares were offered to the Malaysian public, eligible directors, employees and persons who have contributed to the group’s success (10 million shares), and selected investors by way of a private placement (11.08 million shares).
In addition, there was an offer for sale by its promoters that involved 18 million existing shares by way of a private placement to selected investors. The promoters are Haily Holdings Sdn Bhd, See Tin Hai (founder/executive director) and Kik Siew Lee (Haily Construction Sdn Bhd director).
Haily’s offering of 8.92 million shares to the Malaysian public was oversubscribed by 38.81 times. TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent in the IPO exercise.
“The listing marks an important milestone for Haily which began from the humble beginnings of its founders See and Kik (See’s wife) back in 2007,” commented Haily’s non-executive chairman Mohd Jaffar Awang (Ismail).
“The listing exercise will help to unlock the group’s potential of by enhancing its reputation as it markets its construction services and expands its customer base in Malaysia.”
Speaking at the virtual listing ceremony, Mohd Jaffar said Haily plans to focus on its core competency in Johor’s construction sector while leveraging its experience to extend its reach to other states.
“Our group will be able to leverage our capabilities as a Grade G7 contractor which allows us to bid and carry out any size of building construction projects irrespective of the contract value,” he explained.
To-date, Haily had completed 65 building construction projects with a total contract value of RM1.29 bil since 2008.
“We have on-going projects that can sustain us at least until 2023. Currently, Haily has 18 building construction projects as well as two civil engineering related construction projects,” noted Mohd Jaffar.
“The total secured contract value and unbilled contract value as of June 10 stood at RM460.04 mil and RM249.58 mill respectively.” – July 21, 2021