Tentative Date(s):

• Opening of application - 18 October 2024

• Closing of application - 24 October 2024

• Balloting of applications - 28 October 2024

• Allotment of IPO shares to successful applicants - 06 November 2024

• Listing on the Main Market - 11 November 2024

Company Background

The company was incorporated in Malaysia under the Act as a private limited company on 16 June 2022 under the name of Azam Jaya Sdn Bhd. It was subsequently converted to a public limited company on 27 June 2024 where they assumed its present name, Azam Jaya Berhad. The company is an investment holding company and through its subsidiaries, it is principally involved in the provision of construction services.

The company structure is as follows:

Use of proceeds

1. Enhancing construction capabilities  - 13.01% (within 36 months)

2. Working capital for construction projects - 46.21% (within 12 months)

3. Repayment of bank borrowings - 32.54% (within 6 months)

4. Estimated listing expenses - 8.24% (within 3 months)

Enhancing construction capabilities  - 13.01% (within 36 months)

The company intends to allocate RM8.00 million from the Public Issue to enhance its construction capabilities in the following manner:

1. RM6.00 million for expansion of their existing fleet of construction machinery and equipment in order to both enhance its construction capabilities and reduce their reliance on subcontractors and equipment leasing suppliers; and

2. RM2.00 million for investments in technological upgrades such as autonomous vehicle control modules for its existing vehicles, LiDAR-equipped drones and handheld augmented reality surveying equipment.

Working capital for construction projects - 46.21% (within 12 months)

The company intends to allocate approximately RM28.40 million or 46.21% of its IPO proceeds for the general working capital which will reduce its use of overdraft facilities and revolving credit facilities as well as improve the liquidity and cashflow position. The allocation for the working capital is as follows:

Repayment of bank borrowings - 32.54% (within 6 months)

The company intends to use RM20.00 million from the proceeds of the Public Issue to partially repay a revolving credit line with an outstanding amount of RM59.98 million as 

at the LPD granted by CIMB Bank Berhad.

Business Model

The company is principally involved in the provision of construction services where they are mainly involved in the construction of road infrastructure in the State of Sabah. They are the major provider of road infrastructure construction services in the state of Sabah, where they have participated in mainly road, highway, bridge, flyover and tunnel construction projects for over 30 years. Their clients include agencies under the Federal and Sabah state governments (i.e., Ministry of Works, Malaysia and JKR Sabah) as well as property developers and other main contractors. Depending on the requirements of its clients, they are able to act as main contractors or as subcontractors.

Click here to continue the IPO - Azam Jaya Berhad (Part 2)

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