Author : Editor
Kuching-based Sara-Timur Group aims to list its unit, Sara-Timur Sdn Bhd (STSB), on Bursa Malaysia’s Main Board latest by early next year, raising more than RM30 million, its chief said.
Group chairman Datuk Dr M. Zawawi Ismail told Business Times that proceeds from the initial public offering would be utilised to expand STSB’s property development and construction activities.
“We are looking to expand our presence in Peninsular Malaysia. There are plenty of jobs under the Economic Transformation Programme and 10th Malaysia Plan that we plan to bid for.”
He said STSB, set up in 1995, was raking in revenues of around RM300 million a year. The company is expecting its revenue to increase to RM400 million for fiscal 2012 with net profit in the double digit range.
“We are looking at growing the company to be on par with other property and construction giants. Eventually, we will go overseas and look for jobs there,” he added.
STSB currently has about RM2 billion worth of construction projects in hand locally and development projects valued at around RM1.8 billion.
The company is hoping to secure more projects in Kelantan and Johor after winning two jobs worth a combined RM2.2 billion from a private developer and the state government.
In Mersing, Johor, it has a RM1 billion contract from private developer Radiant Starfish Development Sdn Bhd to build Mersing Laguna, comprising two boutique hotels and a waterfront retail and commercial complex, and to redevelop Mersing town.
Radiant Starfish is developing an eco-tourism project worth an estimated RM18 billion. The project involves reclaiming three islands off Mersing to an area of 800ha.
Zawawi said STSB was in the running to win more jobs from Radiant Starfish. In Kota Baru, STSB is undertaking a RM1.2 billion development called Kota Bharu Sentral, in a joint venture with Tunjong Development Corp Sdn Bhd and Perbadanan Menteri Besar Kelantan.
Zawawi added that STSB was also anticipating more contracts from its joint venture partners. The Kelantan government is conceptualising Bandar Baru Tunjong, with an area spanning 800ha, and a series of contracts are expected be given out this year.
Source : btimes.com.my
