KUALA LUMPUR (Jan 30): Vestland Bhd, which is slated to be listed on Bursa Malaysia’s ACE Market on Tuesday (Jan 31), said it has secured a RM63.15 million construction project in Kuala Lumpur.

The group, through its wholly-owned unit Vestland Resources Sdn Bhd, bagged the project from Rimbun Merdu Sdn Bhd, to undertake the main building works for a 33-storey service apartment at Jalan Dewan Sultan Sulaiman 1 in Chow Kit.

In a bourse filing, the construction and property development group said the project has a duration of 34 months and is expected to contribute positively towards the group’s future earnings.

The retail portion of Vestland’s initial public offering (IPO) was oversubscribed by 18.38 times. The group is seeking to raise RM56.1 million fresh capital from the exercise.

The IPO comprises a public issue of 170 million new shares, as well as an offer for sale of 70.8 million existing shares, at 33 sen apiece. At this price, the group is expected to have a market capitalisation of RM311.6 million upon listing.

Vestland’s revenue stream is derived from building construction activities in Malaysia. For the financial year ended 2021 (FY2021), the group posted a net profit of RM10.64 million, compared with RM7 million in FY2020 and RM7.17 million in FY2019.

The group started as a pure build contractor in 2011, but has since expanded its scope of works to become a design-and-build contractor in 2020. In 2021, Vestland expanded its business to include civil engineering works.