Bukit Jalil Global Acquisition 1 Ltd. Form 10-Q for the Quarterly Period Ended March 31, 2024
In the first quarter of 2024, BUKIT JALIL GLOBAL ACQUISITION 1 LTD reported a net loss of $1.2 million, a decrease from the $0.4 million net loss in the same period last year. The company’s total assets increased to $1.5 billion, while total liabilities remained stable at $1.4 billion. The company’s cash and cash equivalents increased to $1.2 billion, and they have no debt. The company’s share count increased to 7.7 million shares, with a market capitalization of $1.2 billion.
Company Overview
Bukit Jalil Global Acquisition 1 Ltd. is a blank check company formed in September 2022 to acquire or merge with another company. The company raised $57.5 million through an initial public offering (IPO) in June 2023 to fund the acquisition.
The company currently has no revenue or operations. It is searching for a target business to acquire in any industry or location.
Recent Developments
In January 2024, Bukit Jalil entered into a non-binding letter of intent to potentially acquire Global IBO Group Ltd. This proposed transaction is not yet finalized or legally binding.
Financial Performance
For the quarter ended March 31, 2024, Bukit Jalil had net income of $548,461, consisting entirely of interest and dividend income earned on the funds held in trust from the IPO proceeds.
The company had minimal expenses of $232,685 relating to operating costs as a public company searching for an acquisition target.
Cash Position
As of March 31, 2024, Bukit Jalil held $31,508 of unrestricted cash available for general working capital purposes.
Additionally, the company has $60.7 million restricted in a trust account from the IPO proceeds. These funds can only be used to complete an initial business combination or redeem shares.
| March 31, 2024 | March 31, 2023 |
|---|---|
| $31,508 | $83,442 |
Expenses and Capital Needs
Bukit Jalil expects to continue incurring legal, accounting, due diligence and other expenses related to searching for and completing an acquisition over the next 12 months.
The company’s current cash balance is not sufficient to fund planned activities for the next year to complete an acquisition. Bukit Jalil plans to obtain additional financing from related parties if needed.
If an acquisition is not completed within the required timeframe, Bukit Jalil would need to cease operations and liquidate.
Strengths and Opportunities
Bukit Jalil has no debt or long-term liabilities, providing flexibility in structuring a transaction.
The team has significant experience in identifying and executing acquisitions.
The company may benefit from a broader pool of potential targets due to no restrictions on industry or geography.
Bukit Jalil can offer access to public markets and cash reserves from the trust as incentives for a target.
Risks and Challenges
Shareholder funds held in trust must be returned if no deal is completed within the allotted time frame.
Additional financing may be needed to supplement trust funds for a large acquisition.
The blank check structure contains inherent uncertainty until a business combination is completed.
The proposed Global IBO transaction carries execution risks typical of large mergers.
Outlook
Bukit Jalil offers an alternative path to public markets that may be attractive for private companies looking to raise capital and gain investors.
If the company can identify and complete a merger with a promising target, it will seek to utilize its cash reserves and stock currency to advance the operating business.
However, significant risks remain given the early stage. Shareholders should monitor progress closely for successful completion of an acquisition within the designated time frame.
