BBSB International Limited, together with its subsidiaries, the ‘Group’, an established civil engineering contractor in Malaysia, has announced the subscription results for its shares under the public offer and placing.
The shares under the public offer have been over-subscribed by approximately 10,745 times. The offer price per share has been set at HK$0.6.
Dealings in shares of BBSB on the GEM of the Stock Exchange of Hong Kong Limited are expected to commence on Tuesday.
A total of 125,000,000 shares are offered under the share offer, of which 90%, or 112,500,000 shares, are offered by way of Placing; while the remaining 10%, or 12,500,000 shares, are offered under the public offer.
Based on the final offer price of HK$0.6 per Share, the net proceeds from the share offer to be received by the company (after deducting underwriting fees and commissions and estimated expenses payable by the company in connection with the share offer) are estimated to be approximately HK$50.0 million.
The Group intends to use these net proceeds for the following purposes: 1) approximately 65.2% to strengthen its financial position to pay for the upfront costs of its potential projects; 2) approximately 19.8% for expansion of workforce to support growth across all regions; 3) approximately 5.0% to upgrade and digitise the Group’s information systems and internal processes; and 4) approximately 10.0% for general working capital.
Lego Corporate Finance Limited is the sole sponsor. Lego Securities Limited is the sole overall coordinator. Lego Securities Limited and Fortune Origin Securities Limited are the joint bookrunners and joint lead managers.
Datuk Tan, Chairman of the board and Executive Director of the Group, said, “We believe that the result of the Share Offer has affirmed market’s recognition of the Group’s business and confidence in our future prospects. We are honoured that investors have shown great support to the Group.
“Listing on GEM of SEHK enables the Group to further strengthen our industry position, enhance our brand recognition and capture market opportunities. We strive to compete for more upcoming large-scale transportation infrastructure engineering projects and flood mitigation projects.”
BBSB International Limited is a civil engineering contractor in Malaysia with over 16 years of experience, specialising in providing bridge engineering services for large-scale transportation infrastructure projects owned or initiated by the government or government-linked companies.
The Group has strategically expanded its civil engineering operations to include flood mitigation.
The Group has participated in a number of notable transportation infrastructure engineering projects in Malaysia, including the Eastern Dispersal Link, Duta-Ulu Kelang Expressway, Damansara-Shah Alam Elevated Expressway, and the SUKE Highway.
The Group currently holds a CIDB Grade G7 qualification in Category CE (Civil Engineering Construction), Category B (Building Construction) and Category ME (Mechanical and Electrical) in Malaysia, which is the highest grade of contractor licence under the Construction Industry Development Board of Malaysia, allowing it to undertake civil and structural works of unlimited tender/contract value.
