Kuala lumpur: Foundation and geotechnical engineering company Geohan Corporation Bhd is set to raise RM72.6 million through its initial public offering (IPO) as it gears up for its debut on Bursa Malaysia Securities’ Main Market on December 5, 2025. Geohan’s managing director, Lee Kim Seng, outlined the allocation of the funds at the prospectus launch event.
According to BERNAMA News Agency, RM40 million, representing 55.1% of the IPO proceeds, will be directed towards expanding the company’s machinery fleet. This investment will enable the acquisition of 17 new machines, including rotary boring rigs, crawler cranes, and excavators. An additional RM25.6 million, or 35.26%, is earmarked for working capital needs. The remaining RM7 million, accounting for 9.64% of the proceeds, will cover listing expenses.
Geohan’s non-independent executive director, Oh Chin Wah, emphasized the company’s strategy to focus on machinery expansion to facilitate growth and strengthen its presence in Singapore. Geohan intends to initially target infrastructure projects in Singapore, leveraging its relatively young fleet of German machines, which are less than a decade old. This strategic move is expected to provide cost competitiveness by utilizing resources from Malaysia in Singapore.
Oh also mentioned plans to establish an operational hub in Johor to enhance operational efficiency, creating synergies between operations in Malaysia and Singapore. He highlighted the company’s long-term focus on these stable and familiar markets.
The IPO involves the issuance of 132 million new ordinary shares priced at 55 sen each. The allocation includes 22 million shares for the Malaysian public, 11 million for eligible directors, employees, and contributors to the group’s success, 55 million for bumiputera investors approved by the Investment, Trade and Industry Ministry (MITI) through private placements, and 44 million shares for institutional and selected investors via private placement.
Upon listing, Geohan’s enlarged issued share capital will comprise 440 million shares, with an estimated market capitalization of RM242 million. Applications for the public issue portion are open and will close at 5 pm on November 21, 2025. Alliance Islamic Bank Bhd is serving as the principal adviser, sole underwriter, and placement agent for the IPO.