Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 17): Newly ACE Market-listed electrical and mechanical engineering firm Kejuruteraan Asastera Bhd (KAB) targets an order book value of RM250 million by year end.

The company's current order book stands at RM210 million and is expected to last till 2019. It is also tendering for projects worth RM250 million.

KAB made its debut on the ACE Market of Bursa Malaysia today with an opening price of 33 sen, a premium of eight sen or 32% from its initial public offering (IPO) price of 25 sen.

The public offer of 16 million issue shares was oversubscribed by 57.33 times.

KAB raised RM20 million from its IPO, which will be allocated for working capital, including tender deposits, tender bonds and on-site expenses, listing expenses, and capital expenditure. It will also be used to establish a new office in Johor Baru and Kuala Lumpur.

The group's main business activities involve the installation, testing and commissioning of electrical systems. It also provides mechanical engineering services such as the installation, testing and commissioning of air conditioned and mechanical ventilation systems.

KAB managing director Datuk Lai Keng Onn said the group intends to grow its revenue contribution from its mechanical engineering division moving forward.

"We target between a 10% and 20% contribution from mechanical engineering next year, and up to 50% in the next five years," Lai said at a press conference this morning.

Currently, the division contributes less than 10% with the remaining mainly from its electrical engineering division.

Additionally, the group is also bidding for projects in the affordable housing segment, targeting projects in Johor in the near future, said Lai.

So far the group has secured projects under the affordable housing programmes such as PR1MA Setapak and Jalilmas at Bukit Jalil, Kuala Lumpur.

Lai added that the group is also eyeing projects in the infrastructure segment in the near future.

As at 10:30am, the group was trading six sen or 24% higher at 31 sen, with 90 million shares done.

 

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