In conjunction with its proposed listing on the Main Market of Bursa Securities, the construction services provider has unveiled its initial public offering (IPO) prospectus today.
The IPO exercise involves an offer for sale of 62,500,000 existing ordinary shares, and will also raise approximately RM51.7 million through a public issue of 76,088,500 new ordinary shares at an issue price of RM0.68 per share. Its IPO is set for January 17, 2023.
For the usage of the IPO proceeds, Kitacon has earmarked 46.4% 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 500,000,000 shares and issue price of RM0.68 per share, Kitacon will have a market capitalisation of RM340 million.
Whilst for its dividend policy, KItacon intends to declare a yearly dividend, equivalent to at least 25% of its profit after tax attributable to its shareholders.
“We started more than 30 years ago with various small scale construction and sub-contracting 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,” Kitacon’s Managing Director Mr. Tan Ah Kee said.
“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,” he added.
“Today marks a momentous occasion for Kitacon and we foresee ourselves growing onwards and upwards as we inch closer to our listing,” Tan Remarked.
“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,” RHB Investment Bank Berhad’s Managing Director/Chief Executive Officer Ganesh Sabaratnam said.
The public issue portion of the IPO will be made available from today and application will close on January 9, 2023 at 5.00 p.m.
RHB Investment Bank is appointed as the principal adviser, sole underwriter and sole placement agent for this IPO exercise.
