KUALA LUMPUR (May 19): Newly listed construction services firm Tuju Setia Bhd opened at 77.5 sen this morning, 10.71% higher than its initial public offering (IPO) price of 70 sen.

The stock rose by as much as 17.5 sen or 25% to 87.5 sen before paring gains to close at 74 sen — still up 40 sen from its IPO price, giving Tuju Setia a market capitalisation of RM234.45 million.

The stock, which saw 114.57 million shares traded, was the sixth most traded stock of the day on the local exchange.

The firm said earlier it aimed to raise up to RM56 million in proceeds in its IPO, of which RM32 million will be allocated for capital expenditure to be utilised to purchase new construction machinery and equipment, and Building Information Modelling (BIM) system software to upskill design and construction activities.

Additionally, the group said it would acquire land and construct new storage facilities for better organisation and utilisation of machinery and equipment and improve the efficiency of maintenance works.

Yesterday, the group told Bursa Malaysia that its wholly-owned subsidiary Pembinaan Tuju Setia Sdn Bhd has been awarded a contract worth RM189 million for a high-rise construction project in Seri Kembangan, Selangor.

The project consists of a 35-storey small office-home-office (865 units) building, 33 storeys of serviced apartments (526 units) and a 13-storey podium car park.

The contract has a duration of 38 months commencing on June 1, 2021, to be completed by July 31, 2024.

“The contract is expected to contribute positively to Tuju Setia and its subsidiary’s earnings and net assets per share from the financial year ending Dec 31, 2021 until the completion of the contract,” it said.