Piling and foundation specialist Econpile Holdings Bhd, which is en route for listing on Bursa Malaysia, has signed an underwriting agreement with RHB Investment Bank Bhd for the company’s initial public offering (IPO) exercise.RHB Investment Bank will act as the principal adviser, underwriter and placement agent for the IPO, which is slated for mid-year.
Econpile’s IPO entails a public issue of 90 million new shares and an offer for sale of 55 million vendor shares.
Of the 90 million new shares under the public issue, 27 million shares will be for application by the local public while 3.5 million shares are allocated to eligible directors, employees, and business associates of the group.
Some 47.5 million shares will be allocated through private placement to identified investors, while 12 million shares will be allocated via private placement to Bumiputera investors approved by the International Trade and Industry Ministry.
Additionally, 55 million shares under the offer-for-sale will be allocated by way of private placement to identified Bumiputera investors.
For the financial year ended June 30, 2013 (FY13), Econpile’s profit after tax surged 61.74% to RM27.87mil from RM17.23mil in the year before, while turnover leapt 26.25% to RM386.07mil versus RM305.78mil previously.
Econpile, which mainly serves the Malaysian market, said it has a policy to pay out at least 20% of profit after tax in dividends annually.
The construction firm’s promoters are group managing director The Cheng Eng, executive director and group CEO Raymond Pang Sar and executive director The Kun Ann, who is Cheng Eng’s daughter.
Cheng Eng and Raymond equally control 100% of the company. Post-listing, their stakes will be reduced to 36.4% each.
