New listing: Econpile secures RM60 million in piling contracts, makes firm debut on Bursa

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KUALA LUMPUR (June 30): Newly-listed Econpile Holdings Bhd has recently secured contracts worth nearly RM 60 million for property development projects nationwide, the company said in a statement in conjunction with its listing on the Main Market of Bursa Malaysia today.

Econpile was the most actively traded stock on its debut, and opened at 66 sen, a 12 sen or 22% premium to its initial public offering (IPO) price of 54 sen.

The company’s CEO & Executive Director Raymond Pang said the contracts worth RM60 million boosted its order book to nearly RM480 million as at 20 June 2014, to be delivered within six to 18 months.

Pang added that the company had established a dividend policy of distributing a minimum of 20% of annual net profits to shareholders, with effect from the financial year ending 30 June 2014 (FY2014).

“We believe that this balanced policy enables shareholders to enjoy Econpile’s positive growth prospects while being rewarded with decent yields.

“Not only that, the dividend policy is also an initiative towards building long-term relationships with our investors,” he said.

For the third quarter ended 31 March 2014, Econpile posted net profit of RM5.5 million, on group revenue of RM87.6 million.

Cumulatively, the company posted net profit of RM24.6 million for the nine-month period ended 31 March 2014, on the back of RM318.9 million group revenue.

The company’s FY2013 net profit was RM27.9 million and group revenue was RM386.1 million.

The company’s IPO raised RM48.60 million in proceeds, of which RM14.58 million will be allocated for the purchase of machinery and equipment, and RM18.16 million for working capital.

The remaining proceeds of RM12.15 million and RM3.71 million will be used for repayment of bank borrowings and listing expenses respectively.

The company’s initial public offering (IPO) entailed a public issue of 90.0 million new ordinary shares and an offer-for-sale of 55.0 million vendor shares, at an issue price of 54 sen per share.

Of the public issue of 90.0 million new ordinary shares, 27.0 million are allocated for public balloting; 3.5 million for eligible directors, employees, and business associates of the Group; and the remaining 59.5 million for private placement to selected investors.