Benalec targets Vietnam, Indonesia

Benalec Holdings Bhd, a marine construction company, aims to expand to Vietnam and Indonesia in the next two to three years, as it eyes the next phase of growth.

The company, which does jobs like construction of helipad and jetty on a remote island in Kedah as well as land reclamation work in Langkawi and Penang, plans to enter these new markets with the help of partners.

“For new markets like Indonesia and Vietnam, I think it’s safer for us if we team up with a joint-venture partner … We have identified the potential partners, but haven’t signed anything yet,” said group managing director Vincent Leaw after the launch of its prospectus in Kuala Lumpur yesterday.

The company is expected to raise RM100 million, by issuing 100 million shares of 25 sen each at an issue price of RM1 each.

The initial public offering (IPO) also involves an offer for sale of 130 million existing shares at an offer price of RM1 each.

Funds raised from the public issue will be used as working capital and to finance ongoing projects.

Some RM90 million will be used to finance Benalec’s three main ongoing projects, two of which are in completion stages, while the other is expected to start next year.

“Today, we are at the top of our game, and we have the potential to become a regional integrated marine construction specialist with our scaleable business models that can be expanded into other regional markets,” said Leaw.

Founded by the late Leaw Eng Chang in 1978, Benalec started as an earthwork and general contractor. Since then, it has ventured into marine construction.

Among its proud moments are the setting up of its shipbuilding business through Benalec Shipyard, and within two years years, it managed to build and deliver four tugboats that are now plying the waters in Southeast Asia.

The closing of the IPO application will be on January 6. It is expected to be listed on the Main Market on January 17.

AmInvestment Bank Bhd is the adviser, sole underwriter and sole placement agent of the IPO. – Btimes

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