BURSA Malaysia’s maiden 2021 Main Market initial public offering (IPO) Tuju Setia Bhd made a modest gain on its listing today amid a lacklustre market sentiment.
The counter debuted at 77.5 sen or a 10.7% premium over the issue price of 70 sen with four million shares exchanged hands before peaking at 87.5 sen within the first five minutes of trading.
Having to fight a bearish market, however, the construction services company gradually gave up most of its gains to close at 74sen, up 4 sen or 5.71% with 114.57 million shares traded.
On the bright side nevertheless, Tuju Setia is poised to win more projects in its FY2021 ending Dec 31, 2021 after securing four new contracts totalling RM587.1 mil year-to-date.
The company which currently has an order book of RM1.14 bil is bidding for RM3.8 bil worth of works in the construction of high-rise buildings as well as design and construction of hospitals and healthcare facilities.
“Our current RM1.14 bil order book is a testament of our good standing in the construction industry and vote of confidence from our established clientele in our construction capabilities,” commented its managing director Wee Eng Kong.
Ongoing projects within Tuju Setia’s order book are Mutiara Central Office Suites (Cheras), Riana Dutamas Phase 2 (Segambut), The Pulse Residence (Bandar Puteri Puchong), PPAM Sofiya Residensi (Desa ParkCity), Emerald Hills Phases 3 and 4 (Cheras), TUAI Residence (Setia Alam), 121 Residences (Petaling Jaya), One Equine (Seri Kembangan) and the Kajang Women and Children Hospital.
Tuju Setia’s IPO exercise raised RM56 mil in proceeds for the group to strengthen its technical expertise and quality in constructing high-rise buildings as well as design and construction of hospitals and healthcare facilities.
Of the amount, RM32 mil will be allocated for capital expenditure which entails purchasing new construction equipment and building information modelling (BIM) system software to upskill design and construction activities.
Additionally, the group also plans to acquire land to construct new storage facilities for better organisation and utilisation of machinery/equipment and improve efficiency of maintenance works. A further RM19 mil will be allocated for working capital and RM5 mil to defray listing expenses.
Tuju Setia has adopted a dividend policy to distribute 25% of its annual net profit as dividends to its shareholders. – May 19, 2021
