In addition , there will be an offer for sale by its promoter that involves 18.00 million existing ordinary shares in Haily by way of private placement to selected investors which is expected to raise gross proceeds of RM12.24 million . Its promoters are Haily Holdings Sdn Bhd , See Tin Hai and Kik Siew Lee .
Of the RM20.40 million to be raised from its public issue , Haily plans to use RM4.20 million ( 20.59 %) for purchase of construction machinery , equipment as well as new contract management and accounting software and office equipment , RM6.00 million ( 29.41 %) for working capital for construction projects , RM7.00 million ( 34.31 %) for repayment of bank borrowings , and the remaining RM3.20 million ( 15.69 %) as listing expenses .
Haily Group Berhad Founder and Executive Director See Tin Hai said : “ The listing exercise is an important next step which will increase the stature of our Group , thus enhancing our reputation as we market our construction services and expand our customer base in Malaysia . We are excited to provide an opportunity for investors and institutions to participate in our equity and continuing growth .”
Currently , Haily has 18 on-going building construction projects as well as 2 civil engineering related construction projects . Its total secured contract value and unbilled contract value as at 10 June 2021 stood at RM460.04 million and RM249.58 million respectively . The ongoing projects are expected to be completed progressively between 2021 and 2023 .
On the long-term prospects of the construction industry , See said Malaysia ’ s economy is expected to gradually improve in the second half of 2021 underpinned by key growth drivers such as continued improvement in global growth , trade and technology cycle , upcoming large-scale infrastructure projects as well as economic stimulus measures .
“ The growth of the residential and industrial sector in other districts of Johor will provide opportunities for the Group , and we have secured and unbilled contracts that can sustain us through the near-term challenges brought about by the Covid-19 pandemic .
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Taking into consideration our healthy cash position , expected profits to be generated from our operations , the amount that is available under our existing banking facilities and proceeds expected to be raised from the public issue , we will have adequate working capital to meet our present and foreseeable requirements as we continue to replenish and enlarge our order book to provide business growth ,” See added .
TA Securities Holdings Berhad is the Principal Adviser , Sponsor , Underwriter and Placement Agent in relation to the IPO . Its Head of Corporate Finance , Ku Mun Fong said : “ The Malaysian economy in 2020 has weathered a challenging year amidst the pandemic . However , with the strong fundamentals of the Malaysian economy , Bursa Malaysia Securities Berhad is able to weather challenges and is poised to grow in the long term . This augurs well with the listing of Haily Group Berhad on the ACE Market of Bursa Malaysia Securities Berhad .”
The Group has an intention to distribute dividends of at least 30 % of its annual profits attributable to its shareholders upon completion of the listing . However , it is not a legally binding obligation / guaranteed commitment to the shareholders . Dividends declared and distributed by the Group for the financial year ended 31 December (“ FYE ”) 2017 , FYE 2018 , FYE 2019 and FYE 2020 were RM10.01 million , RM5.25 million , RM6.00 million and RM2.50 million respectively .
Haily ’ s core competency is building construction in Johor , mainly in the districts of Johor Bahru and Kulai , and the Group plans to continue focusing on building construction there while leveraging on its experience to extend its reach to the other districts . The listing exercise will help accelerate this , as well as enable them to purchase new construction machinery and equipment in anticipation of future growth .