Main Market-bound Geohan To Raise RM72.6 Mln From IPO

KUALA LUMPUR, Nov 17 (Bernama) -- Foundation and geotechnical engineering specialist Geohan Corporation Bhd aims to raise RM72.6 million from its initial public offering (IPO) ahead of its listing on Bursa Malaysia Securities’ Main Market on Dec 5, 2025.

Geohan managing director Lee Kim Seng said RM40 million, or 55.1 per cent, will be utilised for the group’s fleet machinery expansion, specifically to acquire 17 new machines, including rotary boring rigs, crawler cranes and excavators.

“From the RM72.6 million raised, RM40.0 million or 55.1 per cent of the total proceeds will be allocated to purchase 4 boring rigs, and a few other machineries, while RM25.6 million or 35.26 per cent will be for working capital,” he said in his speech at the launch of its prospectus here today.

The remaining RM7 million, 9.64 per cent, will be allocated for the estimated listing expenses.

Geohan non-independent executive director Oh Chin Wah said the company will focus heavily on machinery expansion to support its growth plans while also strengthening its push into Singapore.

“We are going into the Singapore market by entering on a smaller scale, focusing on infrastructure projects first.

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“Our machinery fleet consists of relatively young German machines, all less than 10 years old, and we are deploying those resources in Malaysia to work in Singapore, which gives us cost competitiveness," he said.

Oh added that Geohan plans to enhance operational efficiency by establishing an operational hub in Johor in the near future, enabling the company to synergise Malaysia-Singapore operations.

For the long term, Oh said Geohan remains focused on Malaysia and Singapore, describing both as stable, familiar markets.

Meanwhile, Geohan's IPO entails an issuance of 132 million new ordinary shares at 55 sen apiece.

Of this, 22 million new shares will be allocated to the Malaysian public, 11 million shares for eligible directors, employees and individuals who have contributed to the group’s success, 55 million for bumiputera investors approved by the Investment, Trade and Industry Ministry (MITI) by way of private placements, and another 44 million shares for institutional and selected investors via private placement.

The company’s enlarged issued share capital on listing will comprise 440 million shares with a market capitalisation of RM242 million.

Application for the public issue portion opens today and closes at 5 pm on Nov 21, 2025.

Alliance Islamic Bank Bhd is the principal adviser, sole underwriter, and placement agent for the IPO.

-- BERNAMA