KUALA LUMPUR (Oct 29): Foundation and geotechnical engineering specialist Geohan Corp Bhd has signed an underwriting agreement with Alliance Islamic Bank Bhd ahead of its planned initial public offering (IPO) and listing on the Main Market of Bursa Malaysia Securities Bhd.
The IPO will involve a public issue of 132 million new shares, representing 30% of Geohan’s enlarged issued share capital of 440 million shares upon listing. According to the company, 22 million shares will be offered to the Malaysian public through balloting, 11 million shares will be allocated to eligible directors, employees, and contributors to the group, 55 million shares will be offered to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, while 44 million shares will be placed with institutional and selected investors. There will be no offer for sale of existing shares.
Alliance Islamic Bank will act as the principal adviser, sole underwriter, and placement agent for the IPO.
Geohan managing director Lee Kim Seng described the agreement as a major milestone in the company’s growth journey. “Geohan’s journey from its humble beginnings three decades ago to this monumental milestone marks an exciting new chapter for us,” he said. “This profound achievement is not only about growth, but also a recognition of the unwavering dedication, incredible talent and collaborative spirit of our people who have been instrumental in shaping the group’s success.”
Lee added that the company is expanding its machinery and equipment fleet to accelerate project delivery timelines and strengthen competitiveness as it broadens its customer base in Singapore.
Established in 2016, Geohan provides foundation and geotechnical engineering services, including piling, slope stabilisation, ground improvement and sub-structure works. The company has contributed to major developments such as Genting Highlands’ First World Hotel, Sky Avenue, and key national infrastructure projects like the Klang Valley MRT and the East Coast Rail Link (ECRL).
In June, Geohan filed its draft prospectus with the Securities Commission Malaysia to raise funds for business expansion. Earlier this year, the company also obtained a Specialist Builder (Piling Works) licence from Singapore’s Building and Construction Authority (BCA) and plans to establish a sales and administrative office in Singapore.
Geohan’s financial performance has strengthened in recent years, with net profit rising to RM13.82 million in FY2024 from RM6.69 million in FY2022, while revenue nearly doubled from RM207.98 million to RM395.22 million over the same period.
The company is controlled by Lee Kim Seng, who currently holds a direct 54.4% stake and an indirect 41.4% stake through Rogamas Sdn Bhd, which he jointly owns with his wife Lim Tsui Ning. Following the issuance of new shares, Lee will directly own 38.07%, while Rogamas will hold 29.01%. Subsequently, Lee will transfer a 25.99% stake to Rogamas, resulting in Rogamas holding 55% of Geohan and Lee’s direct stake reducing to 12.08%.