Sabah-based infrastructure player Azam Jaya Bhd (AJB) has made a strong debut on the main market of Bursa Malaysia, driven by a significant oversubscription of its IPO, which reached 23 times. The stock opened at USD 0.21, a 28.21% premium over its issue price of USD 0.16, with an opening volume of 5,126,000 shares. During the trading day, AJB’s share price rose as high as USD 0.24, ultimately closing at USD 0.23.
This listing marks a major milestone for AJB, a company with over 30 years of experience in large-scale road infrastructure projects across Sabah, including roads, highways, bridges, flyovers, and tunnels. "The listing of Azam Jaya is a testament to over 30 years of industry expertise navigating the complexities of road construction in Sabah,” remarked executive director Datuk Jessica Lo Vun Che.
Capital from the IPO, totaling USD 12.9 million, will fund AJB’s growth strategies, enabling it to expand its fleet of machinery and equipment and meet increasing project demands. Lo elaborated, “We are committed to enhancing our construction capabilities by expanding our fleet of machinery and equipment, ensuring we have the tools necessary to meet the demands of our expanding projects.” From the proceeds, USD 1.68 million (13.0%) is earmarked for bolstering construction capabilities, USD 5.96 million (46.2%) for working capital, USD 4.20 million (32.5%) to repay bank borrowings, and USD 1.07 million (8.2%) to cover listing expenses.
In line with AJB’s long-term strategy, the company is targeting new projects by leveraging Sabah’s rising demand for infrastructure development. Datuk Jessica Lo noted, “We are committed to raising construction standards in Sabah to meet the region’s growing infrastructure demands.”
AJB’s strategic goals are supported by the federal government’s Budget 2025, which earmarks substantial funding for Sabah’s development, including USD 2.1 billion for completing the state’s portion of the Pan-Borneo Highway and an additional USD 1.4 billion for other projects. "Azam Jaya welcomes the recent allocation of USD 2.1 billion under Budget 2025 to complete the Sabah portion of the Pan-Borneo Highway, alongside the additional USD 1.4 billion for development in Sabah," she said.
On the financial front, Azam Jaya reported revenue growth from USD 48.6 million in FY21 to USD 58.97 million in FY23, reflecting a compound annual growth rate (CAGR) of 10.1% over two years. AJB has also committed to a dividend policy, aiming to distribute at least 30% of its net profit to shareholders.
As AJB eyes new opportunities, Inter-Pacific Securities Sdn Bhd has acted as its principal adviser, sole underwriter, and sole placement agent for the IPO.
