BBSB International proposes GEM listing to raise 87 million dollars

HONG KONG SAR - Media OutReach Newswire - 31 December 2025 - BBSB International Limited ("BBSB" or the "Company", together with its subsidiaries, the "Group", stock code: 8610.HK), announces the details of its plan to list on the GEM of The Stock Exchange of Hong Kong Limited ("SEHK") today.

A total of 125,000,000 shares, subject to the Offer Size Adjustment Option, will be offered under the Share Offer, of which 90%, or 112,500,000 shares will be offered by way of Placing; while the remaining 10%, or 12,500,000 Shares (subject to reallocation) will be offered under the Public Offer. The Offer Price per Offer Share is expected to be not less than HK$0.6 and not more than HK$0.7. The shares will be traded in board lots of 4,000 shares each. The Public Offer will commence at 9:00 a.m. on 31 December 2025 (Wednesday) and close at 12:00 noon on 8 January 2026 (Thursday). The final offer price and allotment results are expected to be announced on 12 January 2026 (Monday). Dealings in shares of BBSB on the GEM of the SEHK are expected to commence on 13 January 2026 (Tuesday).

Assuming an Offer Price of HK$0.65 per Offer Share (being the mid-point of the indicative price range of the Offer Price), the aggregated net proceeds from the Share Offer, after deducting related expenses and assuming the Offer Size Adjustment Option is not exercised, will be approximately HK$56.0 million (equivalent to approximately RM30.2 million). The Group intends to use these net proceeds for the following purposes: 1) approximately 65.2% to strengthen its financial position to pay for the upfront costs of its potential projects; 2) approximately 19.8% for expansion of workforce to support growth across all regions; 3) approximately 5.0% to upgrade and digitise the Group's information systems and internal processes; and 4) approximately 10.0% for general working capital.

Lego Corporate Finance Limited is the Sole Sponsor. Lego Securities Limited is the Sole Overall Coordinator. Lego Securities Limited and Fortune Origin Securities Limited are the Joint Bookrunners and Joint Lead Managers.

Cornerstone Investors

The Group has entered into cornerstone investment agreements with 2 cornerstone investors, namely Mr. Choy Joo Seong and Mr. Tan Nam Joo, pursuant to which each of the cornerstone investors have agreed to, subject to certain conditions, subscribe for such number of Shares at the Offer Price, which may be purchased with an amount of HK$7.0 million.

Business Overview

The Group is an established civil engineering contractor in Malaysia with over 16 years of experience, specialising in providing bridge engineering services as a subcontractor for large-scale transportation infrastructure engineering projects owned or initiated by the government or government-linked companies in Malaysia. The Group's business provides 2 categories of services:

1. Bridge engineering works which primarily involve (i) the design and construction of girder bridges; and (ii) construction of the connecting highways, roads and facilities ancillary to the girder bridge, such as drainage, sewerage, lightings and signages; and
2. Floor mitigation works, focusing on the design and construction of flood mitigation structural solutions to reduce flooding risks.

During the Track Record Period, the Group has completed 2 transportation infrastructure engineering projects. Project JB25, which involved step-in works to assist in the completion of certain outstanding work along the SUKE Highway, had a total contract value of approximately RM33.1 million. Project JB30, involving the construction of earth work and drainage works along Raub Bypass, had a total contract value of RM25.0 million. As at the Latest Practicable Date, the Group has 5 ongoing projects with a total contract value of approximately RM723.5 million.

Competitive Strengths

1. Proven track record in the transportation infrastructure engineering market in Malaysia

The Group has established a strong foothold in the transportation infrastructure engineering market in Malaysia since 2008. Attributed to its experiences in undertaking large-scale transportation infrastructure engineering projects in Malaysia, the Group is registered with the highest contractor licence under the CIDB that allows it to undertake civil and structural works of unlimited tender/contract value. The Group has participated in various major transportation infrastructure engineering projects in Malaysia. This demonstrates not only the Group's technical capability and service quality, but also its potential to capture future opportunities in the transportation infrastructure engineering market in Malaysia.

2. Provide holistic value engineering solutions to customers

The Group is able to provide holistic value engineering to customers, which take into account construction cost, timelines and environmental impacts. Value engineering is a systematic methodology that applies established tools and techniques to identify, analyse and optimise the functions of a project. Through detailed analysis of project requirements and close collaboration with its customers, the Group ensures that the final design is both efficient and cost-effective.

3. Management team with in-depth industry experience and knowledge

The Group's management team has extensive industry experience and expertise in the transportation infrastructure engineering industry, especially in the provision of bridge engineering services for large-scale transportation infrastructure engineering projects in Malaysia. Datuk Tan, the chairman of the Board and an executive Director, is a professional engineer in Malaysia and a chartered professional engineer in Australia with over 36 years of experience in the transportation infrastructure engineering industry across both public and private sector projects in Malaysia.

4. Committed to upholding safety and eco-friendliness

The Group places emphasis on safety standard, stringent quality control and environmental protection in the execution of its projects. Its management systems for provision of construction and completion of its projects were certified to be in compliance with the standard required under ISO 9001.

5. Established stable business relationships with major customers, suppliers and subcontractors

The Group's extensive experience and technical knowledge, coupled with its steadfast commitment to safety, quality and environmental responsibility, have earned the confidence of its customers. The Group has been able to maintain long-term business relationships with reputable and large-scale construction and engineering contractors. As at the Latest Practicable Date, its 5 largest customers in each of FY2023 and FY2024 and 4 largest customers in 6M2025 had maintained a business relationship with the Group for up to eight years.

BUSINESS STRATEGIES

1. Competing for more upcoming large-scale transportation infrastructure engineering projects and flood mitigation projects in both Peninsular Malaysia and East Malaysia

Under the policy framework of the Twelfth Malaysia Plan between 2021 to 2025, the Malaysian government has prioritised infrastructure improvement and inter-regional connectivity. To advance these objectives, RM86.0 billion was allocated to key sectors such as transportation and municipal infrastructure in 2025. The Group's established track record coupled with its successful application of civil engineering expertise to flood mitigation projects position the Group favourably to bid for future large-scale projects in both Peninsular Malaysia and East Malaysia.

2. Further strengthening manpower and enhancing project management capability

Bridge engineering works within transportation infrastructure projects typically span 1 to 5 years. The Group is required to deploy a full project management team for each project. To ensure the effective execution of any newly awarded projects without compromising the progress, quality, or safety standards of ongoing works, additional recruitment would be necessary to strengthen the Group's project supervision and site management capabilities.

3. Expansion of workforce to support growth across all regions

The Group plans to expand its headquarters workforce in Peninsular Malaysia to strengthen its central operational capabilities. The expansion in workforce at headquarters will create a robust foundation that not only supports the Group's current project commitments but also positions it to capitalise on future growth opportunities.

4. Upgrade and digitise the Group's information systems and internal processes

At present, the Group does not have an integrated IT system in place and instead relies on individual software tools for specific functions such as budgeting, scheduling, and documentation. The Group intends to acquire a range of software, IT infrastructure upgrades, and process enhancements to establish a streamlined and integrated procurement management system.

The issuer is solely responsible for the content of this announcement.