Geohan shares slip below IPO price on Main Market debut

KUALA LUMPUR (Dec 5): Geohan Corporation Bhd saw its stock fall below its initial public offering (IPO) price on its debut on the Main Market of Bursa Malaysia on Friday, opening at RM0.54 per share against the IPO price of 55 sen.

Trading began with a volume of 1,562,900 shares, giving the company a market capitalisation of RM237.60 million.

Through its IPO, the foundation and geotechnical specialist raised RM72.6 million from the issuance of 132 million new shares.

Of this, RM40 million will be used to expand its machinery fleet, including new rotary boring rigs, crawler cranes and excavators. RM25.6 million is earmarked for working capital, while the remaining RM7 million will cover listing expenses.

Managing director Lee Kim Seng in a post-listing statement said the company is expanding its machinery fleet to boost operational capacity and to establish its presence in Singapore.

“We are all set to capture the opportunities coming from Malaysia’s expanding infrastructure sector and Singapore’s booming construction activities.

“Our extensive industry experience and expertise as a one-stop foundation and geotechnical specialist provider give us a competitive edge in securing a fair portion of foundation and geotechnical contracts.

“By harnessing our strengths, we will continue to lead the industry and drive sustainable growth,” he said.

To note, the 22 million new shares made available for application by the Malaysian public have been oversubscribed 7.78 times, reflecting strong investor demand and confidence in Geohan’s business fundamentals.

Geohan is the eighth company to list on the Main Market of Bursa Malaysia Securities Berhad in 2025.

Alliance Islamic Bank Berhad acted as the principal adviser, sole underwriter and placement agent for Geohan’s IPO.