KUALA LUMPUR: Sabah-based integrated property developer KTI Landmark Bhd has received Bursa Malaysia’s approval for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
“The IPO will enable KTI Group to tap into the equity capital market for future fund raising and provide us the financial flexibility to pursue future growth opportunities as and when they arise,” group managing director and CEO Gordon Loke said in a statement.
He added that it would also allow KTI to embark on the next phase of growth in the property development and construction industries.
KTI Landmark, established in 1984, is principally involved in the provision of design and build construction services and property development.
The company’s design and build construction projects and property development projects are located in Sabah, and it comprises residential properties, commercial properties and mixed developments.
KTI’s property development activities are supported by its in-house construction services, which is complemented by its in-house manufacturing of industrialised building system (IBS) components.
It is the first Construction Industry Development Board-certified on-site IBS manufacturer in Sabah with 24 years of experience in adopting IBS construction techniques in construction activities.
The IPO will involve the issuance of 160 million new shares and an offer for sale of 45 million existing shares, representing 20% and 5.6% of the enlarged share capital of KTI respectively.
Of the 160 million new shares, 40 million new shares will be available to the Malaysian public via balloting; 40 million new shares for its eligible directors, employees and persons who have contributed to the success of KTI Group under pink form allocations.
The remaining 80 million new shares are reserved for private placement to bumiputra investors approved by the International Trade and Industry Ministry (Miti).
As for the offer for sale portion, 20 million shares are reserved for private placement to bumiputra investors approved by Miti while the remaining 25 million shares will be allocated by way of private placement to selected investors.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
In its prospectus, KTI said it competes with industry players that are involved in the development of residential and commercial properties in Sabah, which is the group’s current area of focus.
