Menta Construction preparing for IPO in 2019

By Sharen Kaur, NST Online, September 25, 2018 

KUALA LUMPUR: Menta Construction Sdn Bhd aims to launch an initial public offering (IPO) next year to raise about RM1 billion for expansion.

Chief executive officer, Tan Choon Hock told NST Business that Menta would use part of the IPO fund to invest in construction companies.

"We are looking for good investments and will invest in companies that are profitable and have businesses in construction.

"We will also utilise part of the proceeds from the IPO to acquire more land and undertake property projects. The focus right now is in Malaysia. In the future, if there are opportunities to venture overseas we will look into it," Tan said.

Menta was incorporated on April 6, 1982, and has done various construction work in excess of RM3 billion. This includes a RM1.27 billion earthwork contract for Petronas’ Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor.

In 2016, Menta registered a net profit of RM120 million. The company expects to achieve RM150 million this year.

Menta's current order book is valued at RM700 million. It has a RM500 million sub-contract for the Pan Borneo Highway in Sabah, and a RM200 million job to upgrade a 43 kilometre road between Gambang, Pahang and Segamat, Johor.

Tan said Menta was bidding for more jobs with a combined value of over RM1 billion.

It is eyeing a contract for drainage and earthwork worth RM200 million to RM250 for the Gemas-Johor Baru electrified double tracking project, and other jobs to build roads.

According to Tan, Menta had submitted its bid for the drainage and earthwork contract to the main contractor and would know the outcome within the next few weeks.

"We have another joint venture with a Sarawak-based company to pre-qualify the tender stage for a major road project in the coastal area in Sarawak. We understand that 105 tenderers have submitted for the pre-qualification so it will be a tough race," Tan said.

According to Tan, there were 18 parcels up for grab for the road project and each may be worth between RM500 million and RM600 million.

"We can bid for any of the parcels once we are pre-qualified. We will know whether we have been pre-qualified in the next two to three months and the Sarawak state will invite us to submit our bid," Tan said.

It was reported that the construction of the first part of the coastal road will start in the middle of next year.

Tan said Menta is also eyeing a major highway project in northern Malaysia but he declined to give more details.

Menta was in negotiation with several parties to jointly bid for the project, he added.