Company changing name to “Vivocom Intl Holdings Berhad” to reflect its emergence as a formidable regional construction group.

PETALING JAYA, Jan 7 (Bernama) -- Instacom Group Berhad has announced that, despite challenging market conditions, its recent private placement exercise saw an encouraging take up rate with strategic investors.

To recap, Instacom had previously announced that up to 10% of the issued and paid-up capital of the company will be issued under this private placement exercise.

The placement was done at 25 sen per share which represented a discount of approximately 9.71% to the five (5)-day weighted average market price of Instacom Shares up to and including 16 December 2015. The said date was the last traded day of Instacom Shares immediately preceding the price-fixing date, of RM0.2769 per Instacom share.

The success of this private placement exercise meant that Instacom had raised proceeds of RM33.75 million, further contributing to its cash balance of RM37.99 million as per the company's latest quarterly report for the financial period ended 30 September 2015.

Instacom has a strategic relationship with CRCC Malaysia, a subsidiary of China’s construction behemoth China Railway Construction Corporation Ltd, and is their in-house contractor as well as their Project Delivery Partner in Malaysia.

Its recently awarded notable projects include a RM116 million project in Gombak and two projects totaling RM378 million related to the 1Gateway project in Klang and 1Pavilion Hilltop in Mont Kiara, Kuala Lumpur.

These projects together with the company's current order book are expected to give a strong earnings visibility until end-2017 and beyond.

Growing strongly despite market turbulence

Instacom's  Joint Chief Executive Officer Dato’ Seri Dr Yeoh Seong Mok expressed his pleasure with the success of the public placement exercise and “more so given that it happened at a time when the stock market is in turbulence.”

He added that the successful private placement exercise shows to the market that investors who took up the shares have confidence in the company’s bright prospects, hence the encouraging take up rate.

“Besides the projects awarded to us, CRCC has also submitted biddings for various mega projects throughout Malaysia and Indonesia worth billions. Some of these projects are currently awaiting award outcomes, being in various and some in final negotiation stages.

“As the in-house contractor and PDP for CRCC, I am confident of winning more projects from the Conglomerate in the event some of these mega projects are awarded to them,” Dato’ Seri Dr Yeoh further elaborated.
 
An exciting year ahead for investors and shareholders
 
Dato’ Seri Dr Yeoh further reassured investors and shareholders for an exciting year ahead.
 
“Besides the construction projects secured, Instacom’s telecommunications arm also recently secured RM29 million contracts to build towers in Sabah, Negeri Sembilan and Perak,” he said.
 
“Our Group’s other core business of high-end aluminium manufacturing is also currently growing strongly,” he added.
 
Meanwhile at its Extraordinary General Meeting, shareholders approved a change in the company’s name to “Vivocom Intl Holdings Berhad”.
 
The Proposed Change of Name is to strengthen the Company’s brand image and to better reflect the Company’s focus and aspiration to be a formidable regional construction group.
 
“EXCELLENT BUYING OPPORTUNITY”
 
In another development, CIMB Research has described the current share price of Instacom as an “EXCELLENT BUYING OPPORTUNITY”.
 
“Investors should take advantage of the current price weakness to accumulate Instacom shares. We continue to believe that Instacom is a direct proxy for increasing Chinese FDI in Malaysia,” said the research house.
 
CIMB has a target price of 67 sen for Instacom, giving rise to potential upside of double and beyond the current level of approximately 30 sen.
 
Yesterday the company was the leading performer on Bursa Malaysia with a volume of 175 million shares transacted and closing at 30 sen, up 1.5 sen from the previous day.

SOURCE : INSTACOM GROUP BERHAD

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Choo Seng Choon
Executive Director of Instacom Group Berhad
Email : sengchoon@instacom.com.my

--BERNAMA