Friday August 3, 2012
Pasukhas to raise RM10.8mil from ACE Market listing
By WONG WEI-SHEN
SERDANG: Pasukhas Group Bhd will tentatively be listed on Bursa Malaysia's ACE Market on Aug 29. The mechanical and electrical (M&E) engineering service provider seeks to raise RM10.8mil from its initial public offering (IPO).
At the launch of Pasukhas' prospectus yesterday, chairman and managing director Teng Ah Kiong said: “The listing exercise will enable us to raise funds for our continued operations and expansion as well as enhancing our business profile and future prospects. We believe that our track record and growth potential have put us in a great position in the market and the investors can tap into this growth and realise the fruits in time to come.”
The IPO will see the listing of 90 million shares at an IPO price of 12 sen per share. Ten million of those shares will be offered to the Malaysian public, while 25 million will be offered to the company's eligible directors and employees. The remaining 55 million shares will be for private placement.
Once the exercise is complete, the company will have a total market capitalisation of RM35.4mil based on the listing and its enlarged issued and paid-up share capital of 295 million shares.
The company will be allocating 58.9% or RM6.37mil from the RM10.8mil in IPO proceeds towards its working capital. Teng said it would be utilised on the basis of projects given.
Another 20.4% or RM2.2mil will be utilised for the company's listed expenses, while 15.1% or RM1.63mil has been allocated for repayment of its bank borrowings. The remaining 5.6% or RM600,000 will go towards research and development. The proceeds will be utilised within a timeframe of two years.
Teng said the company targeted to have 20% growth in its profit after tax (PAT) in the financial year ending Dec 31, 2013 (FY13). This will be based on targeted expansion in its business overseas.
Pasukhas currently has a presence in countries such as Indonesia and Abu Dhabi, which collectively contribute less than 20% of its revenue.
Pasukhas has a standing orderbook of RM68mil as at end-June, which will be able to last for one and a half years. In addition, the company has submitted tenders worth RM54mil. “In the past, our record of achieving tenders has been between 20% and 30%,” Teng said.
He added that most of its projects had been achieved via joint ventures and partnerships with sub-contractors. Pasukhas is now in talks with a Qatari company to undertake an M&E project for a commercial building.
“Since we have not obtained an M&E license in Qatar, we can only provide our services for commercial buildings for the time being,” Teng said.
An M&E license in Qatar would enable Pasukhas to tender for projects.
The company also plans to expand its presence in gulf corporation council (GCC) countries, which comprise Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
The company provides engineering services to customers in the water treatment and sewerage industry, palm oil and sugar mills and refineries, and other factories in the manufacturing sector.
It recently made the move into M&E projects and low voltage switchboards for residential and commercial buildings and other infrastructure industries.
Pasukhas manufactures its own LV switchboards and also is in the trading of distribution, power and converter transformers.
“We have been in the M&E engineering services for 27 years and we have successfully completed over 500 M&E engineering services projects both on our own as well as through joint ventures and partnerships with other well established companies,” said Teng.
The purpose of the IPO is to firstly, facilitate its listing on the ACE market. It is also to raise funds for the company to continue its operations and expansion plans, as well as to enhance its business profile. The IPO will enable Pasukhas access to the capital market to source for funds. The company will be able to enhance the liquidity of its shares as well as increase transparency and discipline in its corporate management team.
Pasukhas posted a net profit of RM1.23mil in FY11, 68.3% lower than its net profit in FY10 of RM3.89mil. Revenue for FY11 also fell 36.2% to RM25.82mil from RM40.48mil in the previous year.