Kuala Lumpur, 11 November 2024 – Sabah-based major road infrastructure construction player, Azam Jaya Berhad (“Azam Jaya”) (“大城集团”), has successfully debuted on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The stock is categorised under the construction sector and carries the stock name of AZAMJAYA, with a stock code of 5329.
Azam Jaya, through its subsidiaries (collectively, the “Group”), specialises in the construction of large-scale road infrastructure in Sabah, including roads, highways, bridges, flyovers, and tunnels. With over 30 years of experience in the industry, the Group has a proven track record, having successfully completed over 50 construction projects in the region.
At the opening bell, Azam Jaya’s share price debuted at RM1.00, representing a premium of 28.21% over the issue price of RM0.78, with an opening volume of 5,126,000 shares. This robust debut follows an IPO oversubscription of 23.00 times, reflecting strong confidence in Azam Jaya’s business operations and growth potential.
Datuk Jessica Lo (拿督罗文圻), Executive Director of Azam Jaya, stated, “Today marks an exciting milestone in the corporate journey of Azam Jaya. We are deeply grateful for the market’s confidence and truly delighted by the warm response from investors as we transition to a public listed entity. This achievement is a testament to over 30 years of industry expertise navigating the complexities of road construction in Sabah. With fresh capital, we are well-positioned to accelerate our growth and seize new opportunities.”
“As part of our long-term strategies to build on our success, we plan to enhance our construction capabilities, thus strengthening our capacity to take on larger projects. We are committed to raising construction standards in Sabah to meet the region’s growing infrastructure demands.”
“Sabah’s construction industry is on the cusp of substantial growth, especially in regions where infrastructure development is much needed. We are particularly encouraged by the federal government’s commitment to advancing development in Sabah, notably through the Budget 2025 allocations, in which Sabah received the highest development funding among the states. Azam Jaya wholeheartedly welcomes the recent allocation of RM10 billion under Budget 2025 to complete the Sabah portion of the Pan-Borneo Highway, alongside the additional RM6.7 billion for development in Sabah.”
On the financial front, Azam Jaya’s revenue grew from RM231.5 million in the financial year ended 31 December 2021 (“FYE 2021”) to RM280.8 million in the financial year ended 31 December 2023 (“FYE 2023”), representing a 2-year compound annual growth rate (“CAGR”) of 10.1%. In terms of dividend policy, Azam Jaya targets to distribute at least 30% of its net profit attributable to shareholders.
The Group raised a total of RM61.5 million from the initial public offering (“IPO”). RM8.0 million (13.0%) has been allocated to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment as well as technological upgrades. In addition, RM28.4 million (46.2%) has been set aside for working capital purposes, RM20.0 million (32.5%) is earmarked for repayment of bank borrowings, and RM5.1 million (8.2%) will be used to defray listing expenses.
Inter-Pacific Securities Sdn Bhd is the Principal Adviser, Sole Underwriter and Sole Placement Agent for the IPO exercise.
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