PETALING JAYA: KJTS Group Bhd is capitalising on the increasing demand for cooling services amid Malaysia’s booming data centre industry.
Managing director Lee Kok Choon said the company is in discussions with several data centre providers to offer its cooling services.
“We are now talking to a few data centre providers because of the high concentration of data centres in the country. But we are also talking to industrial parks as well as shopping malls, factories and plants because we are being careful who our customers are; we don’t want data centres now that it is booming then suddenly ….
“On cooling services, one big project can be up to RM100 million just for the cooling. So this is one of our targets because there is a lot of potential,” Lee told SunBiz.
KJTS, which is slated to list on the ACE Market of Bursa Malaysia on Jan 26, aims to raise RM58.9 million from its initial public offering (IPO).
Its IPO entails the issuance of 218.03 million new shares at a retail price of RM0.27 per share.
Proceeds raised from the IPO will be used as follows: RM44.9 million for business expansion, focusing on the Cooling Energy Segment, RM4.5 million for increasing office space; RM8.1 million for day-to-day operations; and RM5.8 million to cover listing expenses.
KJTS is a building support services provider in Malaysia, Thailand and Singapore principally focusing on providing cooling energy, cleaning and facilities management services.
Within its Cooling Energy Segment, it provides cooling energy management services, and EPCC including new, retrofitting and/or upgrading of cooling energy systems.
Its cleaning services are focused on ensuring the cleanliness, tidiness and hygiene of buildings and facilities. Its facilities management services are focused on the repair and maintenance of mechanical and electrical machinery and equipment, process utilities including plumbing, drainage and sewerage, and food and beverage and retail outlet equipment.
The company said in its IPO prospectus that its three business segments are synergistic as they are all supporting services for the safe operation and functioning of buildings and facilities. It is also able to cross-sell these three services to the same customer for buildings and facilities.
KJTS executive director Sheldon Wee Tah Poh said the listing marks a significant step in scaling its operations and enhancing its service offerings in Malaysia, Singapore, and Thailand.
The focus on expanding its Cooling Energy Segment and its regional office network reflects its commitment to meeting the growing demand for high-quality building support services, he said at the company’s prospectus launch on Friday.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole bookrunner for the IPO.
Hong Leong Investment Bank Group managing director/CEO Lee Jim Leng said, “As we step into an era where sustainability and efficiency are valued, KJTS is well-positioned to meet these challenges head-on. KJTS’s vision, combined with operational excellence, ensures their continued growth and competitive edge in the building the support services sector.”
