KUALA LUMPUR (Dec 9): Vestland Bhd has inked an agreement with AmInvestment Bank Bhd to underwrite a total of 74.96 million ordinary shares in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The offering of 240.8 million ordinary shares entails a public issue of 170 million new shares, and an offer for sale of 70.8 million existing shares.
Vestland group managing director Datuk Liew Foo Heen said the group plans to use the IPO proceeds to, among others, supplement working capital requirements in line with the growth in its business operations.
He said the underwriting signing also represents a significant milestone towards Vestland’s listing on the ACE Market, having aimed to further solidify its footing in the construction industry by leveraging the group’s design and build capabilities.
“We are grateful to have AmInvestment Bank’s support as our underwriter, boosting our confidence to reach greater heights.
“We aim to provide a total solution, with a single point of contact to our customers, to deliver better quality and execution for our clients.
“Our vision is to continue to build on our prospects as well as strengthen our position in the market, and deliver long-term value to all our stakeholders,” he said in a statement.
AmInvestment Bank is the principal adviser, sponsor, placement agent and underwriter for the IPO. Vestland is expected to launch its prospectus by the end of December.
Meanwhile, AmInvestment Bank chief executive officer Tracy Chen Wee Keng said the construction industry plays a pivotal role in contributing to capital-intensive projects and drives Malaysia’s nation-building journey
This, she said, not only fuels the country’s economic growth, but also stimulates more job opportunities for the people.
“An IPO by a leading design-and-build contractor such as Vestland echoes the nation’s economic revitalisation and development aspirations.
“We are confident that this IPO will enhance Vestland’s financial position as it embarks on the next phase of its growth,” added Chen.
Vestland is principally involved in the provision of construction services through its wholly-owned subsidiary Vestland Resources Sdn Bhd, a growing Construction Industry Development Board Grade 7 contractor enabled by its design and build capabilities.
The group has an established track record of 11 years since 2011 as a building contractor, with experience and capabilities in the construction of a diverse range of residential and non-residential buildings for both the private and public sectors.
Starting out as a pure build contractor, Vestland has since expanded its scope of work to become a design-and-build contractor in 2020, which has resulted in the ability to garner higher margins. In 2021, the group expanded its business to include civil engineering works.