Kitacon gets SC nod to list on Main Market

KUALA LUMPUR: Construction services company Kumpulan Kitacon Bhd has received the green light from the Securities Commission to list on the Main Market of Bursa Malaysia.

The company said, through its proposed wholly-owned subsidiary Kitacon Sdn Bhd, it specialises in township construction which includes the construction of both residential and non-residential buildings within a development.

Some of the notable township construction projects in which Kitacon was involved include Tropicana Aman, City of Elmina, Serene Heights, Setia Eco Park and Eco Majestic.

“We are excited to embark on this new chapter and aim to leverage on our established track record and quality services to continue growing our core competency and deliver long-term value to all our stakeholders.

"We intend to use the proceeds from the initial public offering (IPO) to support our business growth and further strengthen our footing in the construction industry," said Kitacon managing director Tan Ah Kee in a statement.

Kitacon’s IPO entails a public issue of 76.09 million new shares and an offer of sale of 62.5 million existing shares.

Out of the shares allocated for the public issue, 10 million will be made available for application by the Malaysian public while 8.59 million will be made available for application by the eligible directors, employees and persons who have contributed to the success of Kitacon and its proposed subsidiary.

The remaining 57.5 million shares will be made available to institutional and selected investors by way of private placement.

RHB Investment Bank Bhd is the principal adviser, sole underwriter and sole placement agent for this IPO exercise.