Lim Seong Hai Capital Bhd Makes ACE Market Debut with RM168 Million Fundraise
Lim Seong Hai Capital Bhd (KL:LSH) has officially begun trading on the ACE Market of Bursa Malaysia, marking a pivotal milestone in the company’s growth journey. Transitioning from the LEAP Market, LSH successfully raised RM168.08 million through a combination of public and private share offerings.
Despite a 17% dip on its debut — opening at 73 sen, below its IPO price of 88 sen — investor interest remained strong with over three million shares changing hands within the first 10 minutes of trading.
A Historic Milestone in LSH’s Journey
At the listing ceremony, Chairman Tan Sri Lim Keng Cheng described the occasion as a “historic moment” for the Kuala Lumpur-based construction firm:
“This listing is not the destination but the beginning of a bigger journey,” Lim said, underscoring the company’s long-term vision of expansion and capital growth.
Strong IPO Response Despite Market Volatility
Lim Seong Hai Capital’s IPO drew impressive demand from investors, particularly in the retail segment:
- Public issue of RM116.2 million worth of new shares
- Offer for sale of RM51.9 million in existing shares
- Retail investor tranche oversubscribed by nearly 12 times
- Eligible persons’ allocation fully subscribed
While the initial drop in share price may raise eyebrows, analysts believe this reflects short-term market volatility rather than underlying fundamentals.
Use of IPO Proceeds
Out of the RM116.2 million raised from new shares, LSH has earmarked:
- RM108.86 million for working capital, especially for construction projects
- Remaining funds to cover listing-related expenses
Notably, LSH did not raise capital during its LEAP Market debut in 2021, making this IPO a critical injection of fresh capital to accelerate its expansion plans.
Diverse Business Portfolio with Construction at Its Core
LSH is a well-diversified player in the construction ecosystem. Its core business divisions include:
- Construction and project management
- Supply of building materials
- Electrical and lighting solutions
- Rental of construction machinery
- Hardware tools and mechanical equipment
This integrated approach gives LSH an edge in cost control, supply chain efficiency, and project delivery—factors critical in Malaysia’s booming construction and infrastructure sectors.
Ownership Structure and Post-IPO Standing
The offer for sale proceeds of RM51.9 million go entirely to the Lim family via Lim Seong Hai Resources Sdn Bhd. Post-listing, their combined shareholding in LSH is slightly under 65%, ensuring continued control while opening the door to greater public participation.
AmInvestment Bank served as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO, reflecting institutional confidence in LSH’s business model.
Market Outlook and What’s Next for LSH
With Malaysia’s construction sector projected to grow steadily—boosted by large infrastructure projects like the MRT3, Penang LRT, and Johor’s RTS link—LSH is well-positioned to secure a bigger market share.
The company’s strong order book, combined with proceeds from this IPO, will allow it to pursue new projects, expand its machinery and materials divisions, and scale operations to meet growing demand.
Conclusion
Despite opening lower than expected, Lim Seong Hai Capital Bhd’s listing on the ACE Market signals investor confidence and long-term growth potential. With robust fundamentals, a vertically integrated construction portfolio, and solid leadership, LSH is poised to capitalise on Malaysia’s construction boom in the years ahead.
