The construction services company has sealed an underwriting agreement with RHB Investment Bank earlier today to underwrite a total of 18,588,500 shares.
The underwriting agreement was executed in conjunction with its initial public offering (IPO) and listing on the Main Market of Bursa Securities.
Kitacon’s IPO entails a public issue of 76,088,500 new shares and an offer for sale of 62,500,000 existing shares.
Of the 76,088,500 public issue shares, 57,500,000 shares will be placed out to institutional and selected investors.
Whilst 8,588,500 shares will be made available for application by eligible directors, employees and persons who have contributed to the success of Kitacon and its subsidiary, and the remaining 10,000,000 new shares will be made available for application by the Malaysian public via balloting.
Meanwhile, 62,500,000 offer for sale shares will be offered to Bumiputera investors approved by the Ministry of International Trade and Industry.
“We are enthusiastic to commence the next chapter of our corporate journey. This event symbolises a major milestone for us and brings us one step closer to be a listed company. We aim to further entrench our position as a construction services provider by focusing on our core competency in building construction,” Kitacon’s Managing Director Mr. Tan Ah Kee said.
“Kitacon has grown steadily throughout the years and we are honoured with this opportunity to play a key role in Kitacon’s listing exercise. Their expertise and experience in building construction, together with deeply established business relationships strongly positions Kitacon for growth,” RHB Investment Bank’s Executive Director, Head, Group Capital Markets & Advisory Mr. Jaimie Sia remarked.
The proceeds from the IPO will be used primarily for purchase of construction equipment, purchase of land and construction of storage and refurbishment facility, and working capital.
Barring unforeseen circumstances, Kitacon is expected to be listed on Bursa Securities in January 2023.
RHB Investment Bank is appointed as the Principal Adviser, Sole Underwriter and Sole Placement Agent for this IPO exercise.