Kuala Lumpur: West River Bhd, a provider of mechanical and electrical engineering services, plans to boost its production capacity with a new facility expected to be completed within three years as part of its post-initial public offering (IPO) expansion strategy. Its managing director Lim Yong Lai said the company is also open to accelerating the timeline by acquiring ready-built factories, depending on market conditions.
According to BERNAMA News Agency, the company initially plans to purchase land, obtain the necessary approvals, and proceed with construction. Lim mentioned they are also considering the option of acquiring ready-built factories to potentially shorten the timeline. This decision depends on the market availability of land and suitable buildings, and they are working on both options, he stated during a press conference in conjunction with its listing ceremony.
At 9 am, the company debuted on the ACE Market of Bursa Malaysia at 39.5 sen, a premium of half a sen over its IPO price of 39 sen, with 37.91 million shares traded.
Currently, about 80 per cent of West River’s revenue comes from the Klang Valley, and the company is looking to expand to other areas like Penang, Johor, and Melaka in the next three years. Lim mentioned two ongoing projects in the northern region-one in Langkawi and another hotel project in Penang. The hospitality sector in Penang is seeing significant growth, with more hotel developments being planned. In Johor, the company is tendering for several data centre-related projects, focusing on Penang for hospitality and Johor for data centres.
Lim further elaborated that approximately 13 per cent of their tender book, valued at around RM1 billion, is related to data centres. When asked about its dividend policy, Lim indicated that the company has not finalised its dividend policy yet as it is still in expansion mode, with most funds being reinvested for growth rather than distributed to shareholders. He suggested that a dividend policy might be introduced after two to three years.