SLGC IPO Oversubscribed 3.1 Times Ahead Of ACE Market Listing

KUALA LUMPUR, Sept 24 (Bernama) -- SLGC Bhd’s initial public offering (IPO) has been oversubscribed by 3.1 times, ahead of its listing on the ACE Market of Bursa Malaysia Securities.

In a statement today, the building construction services provider said the public portion was oversubscribed by 4.9 times, while the Bumiputera portion was oversubscribed by 1.2 times.

For the Malaysian public portion, which comprises 28 million new shares, SLGC received 4,647 applications for 113.70 million shares valued at RM31.8 million.

Of these, the Bumiputera portion received 1,962 applications for 31.30 million shares, while the public portion received 2,685 applications for 82.39 million shares.

SLGC said the two million shares allocated to eligible directors and employees under the Pink Form Allocations have been fully subscribed.

Meanwhile, the 70.0 million new shares reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, as well as 5.0 million new shares and 63.0 million offer shares reserved for selected investors, including institutional shareholders, have also been fully placed.

The allotment and transfer of the IPO shares to successful applicants are scheduled for Oct 2, with the company scheduled to list on Oct 6.

SLGC said the IPO comprises a public issue of 105 million new ordinary shares at an issue price of 28 sen per share, representing 18.8 per cent of its enlarged issued share capital, raising gross proceeds of RM29.4 million.

Managing director Yong Zhen Lin said the encouraging response reflected investors’ confidence in the group’s track record, project execution capabilities and growth prospects.

"Looking ahead, we remain positive on the opportunities available to the group, particularly in the industrial segment," he said.

Yong said continued investments in manufacturing plants, warehouses, logistics facilities, data centres and other industrial developments are expected to support demand for construction services.

He also said the company is selectively tendering for new projects while maintaining disciplined project execution and building its project pipeline.

The group, through its subsidiaries, provides building construction services, including design-and-build, external and ancillary works, primarily as a main contractor for commercial, industrial and residential developments.

As at Aug 12, 2026, SLGC had an unbilled order book of RM1.0 billion that would be recognised progressively over the next five financial years. 

From the RM29.4 million IPO proceeds, RM9.2 million will be used to purchase construction machinery and equipment, RM7.6 million to repay bank borrowings, RM7.5 million for working capital and RM500,000 to upgrade construction management software.

The remaining RM4.6 million has been earmarked for estimated listing expenses.

Upon listing, SLGC is expected to have a market capitalisation of approximately RM156.8 million based on the IPO price of 28 sen and enlarged issued share capital of 560 million shares.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise. 

-- BERNAMA