PN17 Company Ireka Secures RM15.5 Million Subcontract to Build Penang Health Clinic

Practice Note 17 (PN17) company Ireka Corp Bhd has secured a RM15.5 million subcontract to construct a government health clinic and integrated staff quarters in Mak Mandin, Seberang Perai, Penang. The contract was awarded by ANS Development Sdn Bhd.

According to Ireka’s filing on Thursday, the project officially commenced on Nov 10 and is scheduled for completion on Aug 21, 2028.

Part of Ireka’s PN17 Regularisation Efforts

The subcontract award comes as Ireka continues working to exit its PN17 status. Earlier this month, the company signed a non-binding term sheet with China-based Rongyao Investment Chengdu Co Ltd, outlining a proposed recapitalisation and restructuring framework.

Under the proposal, Rongyao will:

• Inject fresh cash into Ireka

• Contribute strategic assets

• Lead negotiations with major creditors for debt restructuring

A key component of the plan includes:

• An underwritten private placement of new shares representing 10% of Ireka’s existing share base at an indicative price of 30 sen, subject to regulatory approval

• An asset injection of up to RM50 million, to be acquired through the issuance of new shares at a discounted valuation agreed upon by both parties

Ireka has been classified as a PN17 entity since March 2022 and is currently racing to meet Bursa Malaysia’s regulatory requirements for regularisation.

Trading Suspended Pending Bursa Decision

Trading in Ireka’s shares has been suspended since Oct 3, pending Bursa Securities’ decision on:

1. The company’s appeal against its proposed de-listing

2. Its request for more time to submit a full regularisation plan

Ireka last traded at one sen, valuing the company at RM2.3 million.

Context for KL–Selangor Property & Industrial Investors

Even though the project is located in Penang, Ireka’s restructuring progress is closely watched by developers, contractors and investors within the Klang Valley—particularly those active in:

• Industrial land in Selangor

• Factory developments in Puchong

• Industrial property in the Subang area

• Commercial property in KL

• Office space in Bukit Jalil

These markets often rely on financially stable contractors and engineering partners, making Ireka’s PN17 developments relevant to the broader construction supply chain.