Kimlun Corp interested in MRT project

15 June 2010 , By The Star

Soon-to-be-listed Kimlun Corp Bhd has expressed its interest to participate in the proposed mass rapid transit (MRT) system under the 10th Malaysia Plan, its top official said.

Chief executive officer and executive director Sim Tian Liang said the construction and engineering services provider outfit was looking to ride on the numerous projects under the new economic plan and was particularly keen on the massive 156km MRT project.

“Of course, we would like to bid for (relevant) parts of the project,” he told reporters after the company’s prospectus launch here yesterday, adding that the Malaysian market remained the major revenue contributor to Kimlun’s operations.

Kimlun, which will debut on the Bursa Malaysia main market on June 29, expects to raise from its listing exercise up to RM62.08mil in gross proceeds, most of which will be used for the construction of factories and purchase of plants and machinery.

Sim said the Johor Baru-based firm, which currently has ongoing projects from clients such as the Iskandar Regional Development Authority, Tebrau Teguh Bhd, UEM Land Holdings Group and Mah Sing Group, had an order book of about RM730.90mil as at Apr 30.

“This will last us about two years. Every day we get interested parties making enquiries,” he said when asked about future projects.He declined to reveal specific tenders the company had submitted or make any financial projections, saying only that the group had been “actively tendering” for projects in Islandar Malaysia and intended to continue to tap such opportunities.

Kimlun would also expand into Sabah and Sarawak and was seeking opportunities to export its products to Australia, the Middle East and other South-East Asian markets for diversity, Sim said.

Kimlun’s initial public offering (IPO) involves a public issue of 64 million new shares of 50 sen each and an offer for sale of 11.3 million existing shares. The public issue and offer for sale shares are priced at 97 sen each. Of the 64 million new shares, 11.45 million will be available for public subscription and 1.5 million allocated for eligible employees and business associates of Kimlun and its subsidiaries.

The remaining 33.05 million shares are for private placement to selected investors and 18 million for private placement to bumiputras approved by the International Trade and Industry Ministry. Upon its listing, Kimlun will have a market capitalisation of RM222.13mil based on its enlarged issued and paid-up share capital of RM114.5mil.

comprising 229 million shares.

Kimlun has three wholly-owned subsidiaries – Kimlun Sdn Bhd, SPC Industries Sdn Bhd and I-Buildtech Solutions Pte Ltd.

These companies specialise in various areas of the construction business from infrastructure and building construction, construction management, provision of industrial building system and concrete product manufacturing.

For the financial year ended Dec 31, Kimlun made a net profit of RM31.53mil on revenue of RM435.41mil with a gross profit margin of 14.03%.

AmInvestment Bank is the adviser, sole underwriter and sole placement agent for the IPO.