CONSTRUCTION services company, Kumpulan Kitacon Bhd, has signed an underwriting agreement with RHB Investment Bank Bhd today to underwrite a total of 18.58 million shares in conjunction with its IPO and listing on the Main Market of Bursa Malaysia Securities Bhd.
Kumpulan Kitacon’s IPO entails a public issue of 76,088,500 new shares and an offer for sale of 62.5 million existing shares.
Of the 76,088,500 public issue shares, 57.5 million shares will be placed out to institutional and selected investors. Another 8,588,500 shares will be made available for application by eligible directors, employees and persons who have contributed to the success of Kumpulan Kitacon and its subsidiary, and the remaining 10 million new shares will be made available for application by the Malaysian public via balloting.
Meanwhile, 62.5 million 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 being a listed company,” Kumpulan Kitacon MD Tan Ah Kee said in a statement.
“We aim to further entrench our position as a construction services provider by focusing on our core competency in building construction,” he added.
“Kumpulan Kitacon has grown steadily throughout the years and we are honoured with this opportunity to play a key role in Kumpulan Kitacon’s listing exercise. Their expertise and experience in building construction, together with deeply established business relationships strongly positions Kumpulan Kitacon for growth,” RHB Investment Bank ED and head of Group Capital Markets & Advisory 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, Kumpulan Kitacon is expected to be listed on Bursa Securities in January 2023. RHB Investment Bank is the principal adviser, sole underwriter and sole placement agent for this IPO exercise. — TMR / pic: RHB and Kitacon