KUALA LUMPUR: Piling and foundation solutions provider, Econpile Holdings Bhd, aims to maintain a 12.8 per cent market share and strengthen profit margin following its listing on Bursa Malaysia today.
For the 2013 financial year, the group recorded a profit margin of 15 per cent.
Executive director and Group chief executive officer Raymond Pang Sar said the group will continue to explore the domestic market for piling and foundation works to achieve the target.
"We will upgrade machinery to secure more jobs and also boost performance," Pang told a media conference here today.
Econpile's Initial Public Offering (IPO) raised RM48.60 million in proceeds for the group, of which RM14.58 million will be allocated for the purchase of machinery and equipment and RM18.16 million for working capital.
The remaining RM12.15 million and RM3.71 million respectively will be used for repayment of bank borrowings as well as the listing expenses.
Under its listing exercise, the public tranche of 27 million shares was oversubscribed by 35.4 times.
The group made its debut on the Main Market today at 66 sen, which was a 12 sen premium over the 54 sen issue price.
Last week, the group secured RM60 million in contracts for the Ecosky development project in the Klang Valley.
"This effectively boosts our order book to nearly RM480 million as of June 20, 2014, to be delivered within six to 18 months," Pang added.
The group's tender book stands at RM1.2 billion , comprising projects around the Klang Valley.
According to the Independent Market Research (IMR) report, the piling and foundation industry is expected to be valued at RM4.10 billion in 2017, growing 11.5 per cent on a compounded annual basis from RM2.38 billion in 2012.
The IMR bases its optimistic outlook on the piling and foundation services market on speedy implementation of infrastructure projects under the 10th Malaysian Plan and robust property development activities under the Greater Klang Valley Initiatives.-- Bernama