KUALA LUMPUR: Bore piling and bridging specialist Ikhmas Jaya Group Bhd, which plans to list on the Main Market of Bursa Malaysia on July 27, expects double-digit revenue growth this year.

Speaking to reporters after the launch of the prospectus, Ikhmas Jaya chief financial officer Lum Yuet Ngoh said growth would be supported by the existing order book of RM346 million and new projects that the company is expected to clinch.

Ikhmas Jaya group managing director Datuk Ang Cheng Siong said the group will tender up to RM4 billion to RM5 billion worth of projects by year end.

He said the group is tendering for elevated highway projects, such as the Damansara-Shah Alam Elevated Expressway (Dash), Duta-Ulu Klang Expressway (Duke), the extension of the KLIA expressway; River of Life project and affordable homes projects.

The group also intends to participate in the Klang Valley Mass Rapid Transit Line 2 and Light Rail Transit Line 3 projects.

Ang, who is also the controlling shareholder, believes that Ikhmas Jaya is able to achieve a success rate of 15% to 20%.

Ikhmas Jaya’s initial public offering involves 182 million shares at 57 sen per share, of which 126 million are new shares issued and 56 million shares are offered for sale from substantial shareholders Ang and executive director Datuk Dr Khoo Ping Sen.

The duo will hold 65% equity interest in Ikhmas Jaya after the listing exercise through Ikhmas Jaya Holdings Sdn Bhd and Aura Perdana (M) Sdn Bhd. 

The group recorded a net profit of RM21.41 million in the financial year ended December 2014 (FY14), a decrease of 0.23% from RM21.46 million in FY13. Revenue was RM293.51 million while revenue for FY13 was RM205.34 million.

For FY14, the profit after tax (PAT) margin was 7.29%, while the PAT margin was 10.45% in FY13.

Ikhmas Jaya plans to allocate RM12 million to repay bank borrowings; RM18 million is for working capital and the remaining RM5 million is for listing expenses. The group’s gross gearing will be reduced from 0.8 times to 0.4 times after repaying the bank borrowings.

Ikhmas Jaya has a dividend policy to distribute a minimum of 20% of the group’s PAT. 

This article first appeared in The Edge Financial Daily, on July 1, 2015.