KJTS Group Berhad (KJTS) and its subsidiaries (KJTS group) signed the underwriting agreement with Hong Leong Investment Bank Berhad (HLIB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad.
In a statement, the building support provider in Malaysia, Thailand and Singapore said the IPO exercise, as detailed in the company’s draft prospectus available on the Bursa Malaysia Berhad’s website, involves the issuance of approximately 218.03 million new ordinary shares.
“This represents 31.69% of KJTS’s enlarged number of issued shares, which is split between the retail offering of 49.4 million new ordinary shares which represents 7.18% of the enlarged issued shares as well as institutional offering of 168.63 million new ordinary shares to institutional and selected investors which represents 24.51% of the enlarged issued shares,” it said today (Dec 4).
HLIB, as the principal adviser, sponsor, sole underwriter, and sole bookrunner will underwrite the entire 49.4 million new ordinary shares under the retail offering.
KJTS managing director Lee Kok Choon and executive director Sheldon Wee said the IPO marks a pivotal moment in KJTS’s history, paving the way for its next stage of strategic growth.
“Our journey with HLIB in this endeavour is instrumental in realising our expansion goals and strengthening our market position. The funds raised from the IPO will be primarily deployed to expand our cooling energy segment in Malaysia.
“Our cooling energy services enables us to take advantage of opportunities from growing awareness of environmental, social and governance (ESG) principles as these systems help our customers reduce carbon dioxide emissions through the reduction of electricity consumption.
“We also plan to use these funds to expand our offices in Malaysia, Thailand, and Singapore. This financial boost is key to our commitment to sustaining and expanding our services across these countries.”
Meanwhile, HLIB group managing director and chief executive officer Lee Jim Leng said they are pleased to have played a key role in KJTS’ IPO journey.
“We hope that KJTS’ market presence and future growth plans will present a compelling opportunity for investors. We are confident that this listing will be a significant step forward for the company.
“The listing of KJTS on Bursa Securities is set to provide a robust platform for the company to embark on its next phase of growth and aligns its long-term vision to solidify its position as a leader in the building support services sector,” she said.
KJTS is a provider of building support services in Malaysia, offering cooling energy, cleaning, and facilities management services.
These include cooling energy management and engineering, procurement, construction and commissioning of cooling energy systems services, general and specialised cleaning services, and facilities management services that cover the maintenance and repair of mechanical and electrical machinery and equipment.
