Vivocom optimistic on bringing value with current and upcoming projects

TODAY marks the completion of the multiple corporate proposals undertaken by Vivocom Int’l Holdings Bhd with the successful listing of 164.25 million consideration shares and another 169.93 private placement shares on the ACE Market of Bursa Malaysia.

This marks the beginning of the three years of the self-imposed moratorium that Group CEO Datuk Seri Chia Kok Teong has volunteered.

“I am excited about the prospect ahead for Vivocom, which is why I’ve volunteered and commit not to sell my own personal stakes in the company in the market over the next three years. Now that our corporate exercise is behind us, we can focus on the works ahead. We have been planning on our business strategies over the last few years and are confident to bring values to all our stakeholders,” Datuk Seri Chia said.

Indeed, the private placement has helped to raise capital for the Group’s ongoing and upcoming new projects. In fact, Vivocom has just recently announced in February that it had secured a lucrative sand contract worth RM3.79 bil that could potentially soar to RM6 bil.

This is a massive win and represented a game-changer for the Group as it would contribute significantly to earnings for the next few years.

“The first of the sand shipment shall commence by the early May, as our K2 export permit will be ready soon. There have been some delays caused by the MCO. Samples of sand have been despatched to Hong Kong and should arrive there soon for testing and ascertainment if they are the correct type sought by the client. Meanwhile the client is in the midst of preparing an irrevocable DLC (Documentary Letter of Credit) for us,” Datuk Seri Chia said.

He added that the market for sand export is extremely huge and could boost the Group’s earnings growth over the next few years.

“We see this deal as the launchpad for the Group into the market and we are focus on delivering on our promises. We are confident that the RM3.79 bil contract win is the first of many to come if we manage to perform well,” he added.

Sands from Malaysia are a highly-sought after commodity globally. The quality is uncontaminated with volcanic ashes or other impurities. Our silica sand, marine sand, river sand and river-mouth sand are amongst the best in the world.

Aside from that, the Group will also focus on its property development project following the completion of its 45%-stake acquisition in V Development Sdn Bhd. The project is a 45-storey  apartment building block comprising 900 units, car park bays, and other common facilities.

The foray into the property development business will provide potential synergy for the Group as Vivocom could tap onto its in-house construction and aluminium design and fabrication capabilities when carrying out its development projects.

Datuk Seri Chia highlighted that the Group will continue to focus on measures to add values for its shareholders and clients by leveraging on its expertise and expanding its business into other areas such as the exports of sands. – March 29, 2021


Photo caption: Flanked by two of his Board members, Datuk Azahar Rasul and Ar. Adrian Lim, Datuk Seri Chia Kok Teong is optimistic about the outlook and prospects for the Vivocom Group.

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