Tuju Setia makes strong debut, rises to high of 87.5 sen

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KUALA LUMPUR: Construction services company Tuju Setia Bhd made a firm debut on the Main Market of Bursa Malaysia on Wednesday, rising to a high of 87.5 sen amid a cautious broader market.

It opened at 77.5 sen, or 7.5 sen above its offer price of 70 sen.

At 9.10am, it was trading at 82 sen, or 12 sen above the offer price. There were 26 million shares done at prices ranging from 75 sen to 87.5 sen.

The FBM KLCI fell 3.02 points or 0.19% to 1,588.30. Turnover was 363.63 million shares valued at RM163.27mil. There were 142 gainers, 281 losers and 284 counters unchanged.

Tuju Setia’s initial public offering (IPO) entailed the issuance of 80 million new shares at 70 sen per share, raising proceeds of RM56mil. There was also an offer for sale of 27 million existing shares by the vendors.https://sites.thestar.com.my/tsolnewsletter/default_story.aspx?s=business%2Fbusiness-news&k=markets&ku=tag%2Fmarkets

The shares were oversubscribed by 42.1 times. It received 21,292 applications for 682.3 million shares with a total value of RM477.6mil for the 15.9 million shares that were made available for application by the public.

On Tuesday, the company announced it had secured a RM189mil job for main building works at a high-rise construction project in Seri Kembangan, Selangor.

The latest contract saw the group’s order book increase to RM1.14bil from RM953.1mil previously.

Analysts said while the construction sector was largely affected by the Covid-19 pandemic last year, construction activity is expected to pick up this year, supported by the reopening of the economy.

According to the Independent Market Research Report, the value of construction work completed in Malaysia fell by 19% year-on-year (y-o-y) in 2020 but the industry is expected to grow by 13.9% in 2021. TheStar