KEB Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its proposed IPO on the ACE Market of Bursa Malaysia, involving a total of 226.78 million shares.
The IPO comprises a public issue of 138.54 million new ordinary shares and an offer for sale of 88.24 million existing shares.
Of the 138.54 million new shares, 44.12 million shares, representing 5% of KEB’s enlarged issued share capital, will be made available to the Malaysian public.
Another 22.06 million shares, or 2.5%, will be allocated to eligible individuals, while 22.06 million shares, or 2.5%, will be placed with identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
A further 50.3 million shares, representing 5.7% of the enlarged issued share capital, will be placed with selected investors.
Separately, the offer for sale comprises 88.24 million existing shares, or 10% of the enlarged issued share capital, to be placed with Bumiputera investors approved by MITI.
Under the underwriting agreement, M&A Securities will underwrite 66.18 million new shares, comprising the 44.12 million shares offered to the Malaysian public and 22.06 million shares allocated to eligible persons.
KEB Managing Director Datuk Lim Kim Chong said proceeds from the public issue will be used for landbank acquisition, working capital for property development, repayment of bank borrowings and listing expenses.
KEB, which ventured into property development in 2004, has completed 14 projects and currently has two ongoing developments with an estimated combined gross development value (GDV) of RM773.29 million.
It also has four future projects with an estimated total GDV of RM940.74 million.
The group develops residential, industrial, commercial and mixed-use properties and operates in-house construction capabilities through KEB Utama Sdn Bhd, a CIDB Grade G7 contractor.
M&A Securities is the principal advisor, sponsor, placement agent and underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial advisor.
