KUALA LUMPUR: Azam Jaya Bhd, a Sabah construction company owned by Tan Sri Joseph Lo Tain Foh and his family, has filed for an initial public offering (IPO) on Bursa Malaysia's Main Market.
His son Datuk Jonathan Lo, his currently the group managing director of the company.
The IPO will consist of 78.8 million new shares, according to its draft prospectus.
The draft prospectus on the Securities Commission Malaysia (SC) website shows that 25 million shares will be available to the Malaysian public.
In comparison, 10 million shares will be allocated to Azam Jaya's eligible directors and employees.
The remaining 43.8 million shares will be reserved for private placement to institutional and selected investors.
Azam Jaya will also offer 50 million existing shares for sale through private placement to institutional and selected investors.
The Lo family plans to retain control over the company upon listing, with a 53.53 per cent interest.
The company said that the proceeds from this sale will be used to repay bank loans, enhance its construction capabilities, fund ongoing projects, and bid for additional road infrastructure projects.
Azam Jaya's total borrowings amounted to RM162.54 million.
"We intend to acquire construction machinery and equipment such as excavators, dump trucks, motor graders, bulldozers and staff vehicles such as light trucks and SUVs."An increase in our fleet size will enable us to improve our operational efficiency as we can better manage the use of our fleet to undertake more construction works as opposed to relying on external subcontractors to perform such works," it said.
Inter-Pacific Securities Sdn Bhd is the IPO's principal adviser, sole underwriter and sole placement agent.