Ley Choon Group Holdings, which is now quoted on the Catalist Board, is making a bid to move back to the Mainboard.
Its share price gained 17.95% to 9.2 cents as at 9.05 am in reaction to the news and was the most heavily traded counter.
The company, which specialises in underground construction works, was first listed on the Mainboard back in August 2012 following a reverse takeover of Ultro Technologies.
The company changed its listing to the Catalist in Feb 2017 and it had to go through a debt restructuring exercise.
Since March 2024, Ley Choon has paid up everything under the debt restructuring agreement and charges on its assets have been released.
"The fulfilment of the debt restructuring agreement has given the company better flexibility over its cash usage with the absence of debt servicing costs and improved cash flow.
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"The group also has greater freedom over its working capital management as well as decisions on capital expenditure," reads the company's filing to the exchange on Jan 5.
Ley Choon says that the proposed transfer to the Mainboard is justified because of its "long-term strategic positioning" as a mature, profitable and growth-stage issuer.
It notes that from FY2021 to FY2025, earnings have grown from $0.9 million $14.5 million in the most recent FY2025.
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In the most recent 1HFY2026 ended Sept 30 2025, earnings was $6.1 million, down 16.9% y-o-y; revenue in the same period was flat at $64.4 million.
"As such, the company has clearly demonstrated its ability to sustain its profitability," says Ley Choon.
Ley Choon says it is keeping its focus on "sustainable growth" through disciplined and strategic tendering in underground infrastructure and utilities projects.
"Ongoing efforts to enhance operational efficiency, strengthen cost management, and optimise cash flow will further reinforce the group’s resilience and competitiveness.
As of Jan 5, its order book was $325.6 million.
"Given the company’s market position, stage of growth and relative stability, the directors are of the opinion that the proposed transfer is timely and appropriate.
"A transfer at this stage would enhance the group’s capital markets profile and better support its medium to long-term business plans," says Ley Choon.
Based on its closing price of 7.8 cents on Jan 5, the company is valued at $117.5 million. It is up 56% in the past 12 months.
