Kumpulan Kitacon Berhad made its debut on the Main Market of Bursa Malaysia Securities Berhad today. Kitacon’s shares opened at RM0.99, representing a 45.6% premium over the initial public offering price of RM0.68. The Company is listed under the stock name of ‘KITACON’ and stock code of ‘5310’.
Speaking at the listing ceremony, Kitacon’s Managing Director Mr. Tan Ah Kee said, “We are pleased with the successful debut of Kitacon on the Main Market of Bursa Malaysia Securities Berhad. As Kitacon embarks on this new journey, we are excited about our growth prospects and wish to welcome all our new shareholders onboard.”
“We will continue to work hard with the same resolute focus to deliver sustainable growth. We believe Kitacon will grow in strength over the coming years and aim to reward our shareholders for their trust and confidence in accordance with our dividend policy to pay out at least 25% of the profit after tax,” he added.
Kitacon’s public issue was well received and was oversubscribed by 11.46 times. The Company successfully raised a total of RM57.1 million in proceeds through an offering of 76,088,500 new ordinary shares at RM0.68 each. Of the total proceeds raised, RM24.0 million has been allocated for the purchase of construction equipment while RM20.0 million is earmarked for the purchase of land and construction of a storage and refurbishment facility.
For the 9-month financial period ended 30 September 2022, the Company reported an unaudited combined net profit of RM35.2 million on the back of RM350.8 million revenue.
RHB Investment Bank Berhad is the Principal Adviser, Sole Underwriter and Sole Placement Agent for this IPO exercise.
