KUALA LUMPUR: Construction services provider Kumpulan Kitacon unveiled its initial public offering (IPO) prospectus here today. This is in conjunction with its proposed listing on the Main Market of Bursa Malaysia Securities , which is set for Jan 17, 2023.
The IPO involves an offer for sale of 62,500,000 existing ordinary shares, and will raise about RM51.7 million through a public issue of 76,088,500 new ordinary shares at an issue price of 68 sen per share.
Kitacon has earmarked 46.4% of the IPO proceeds for the purchase of construction equipment, which includes aluminium formwork systems, scaffoldings and cabins. Meanwhile, 38.7% has been budgeted for the purchase of land and construction of a storage and refurbishment facility while 6.3% has been set aside for working capital expenditure. The remaining proceeds will be utilised for the listing expenses.
Based on the enlarged issued share capital of 500 million shares and issue price of 68 sen per share, Kitacon will have a market capitalisation of RM340 million. The company intends to declare a yearly dividend, equivalent to at least 25% of its profit after tax attributable to its shareholders.
Kitacon managing director Tan Ah Kee said, “We started more than 30 years ago with various small-scale construction and subcontracting works. We have since successfully completed a wide range of construction projects including residential, commercial, industrial, purpose-built and institutional buildings, and today, we specialise in township construction and pride ourselves on the quality of our construction works which is supported by the awards and recognitions from the Construction Industry Development Board of Malaysia for QLASSIC and SHASSIC. We are grateful to our team, customers and business partners for their support.
“Looking ahead, our goal is to broaden our reach and expertise in township construction as we aim to secure more contracts from new clients while continuing to foster our business relationships with existing clients. Additionally, we will continuously explore and adopt progressive construction techniques such as the use of aluminium framework system to improve our productivity and deliver projects within the stipulated time, cost and highest quality standards.”
RHB Investment Bank Bhd managing director/CEO Ganesh Sabaratnam said, “We are delighted to close off 2022 with the launch of Kitacon’s IPO prospectus. RHB is honoured to play a key role in Kitacon’s listing. We believe Kitacon will continue to scale greater heights and create value for all its stakeholders.”
The public issue portion of the IPO is available and applications will close on Jan 9 2023.
RHB Investment Bank is the principal adviser, sole underwriter and sole placement agent for this IPO exercise.
