KTI Landmark inks underwriting deal with M&A Securities

From left: KTI Landmark executive director Stella Loke, executive director Wilson Loke, managing director and CEO Gordon Loke, M&A Equity Holdings Bhd managing director Datuk Bill Tan and M&A Securities Sdn Bhd head of corporate finance Gary Ting

KUALA LUMPUR: KTI Landmark Bhd has signed an underwriting deal with M&A Securities Sdn Bhd for for its listing on the ACE Market of Bursa Malaysia.

In a statement, the Sabah-based integrated property developer said the initial public offering (IPO) will comprise a public issue 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.

M&A Securities will underwrite a total of 80 million new shares made available to the Malaysian public and pink form allocations while the remaining 80 million new shares will be placed out to Bumiputera investors approved by the Ministry of International Trade and Industry (Miti).

For the offer of sale, 20 million shares are reserved for private placement to Bumiputera investors approved by the MITI while the remaining 25 million shares will be allocated by way of private placement to selected investors.

KTI group managing director Gordon Loke said the company has a proven track record as a design and build contractor to Lembaga Pembangunan Perumahan dan Bandar (LPPB), the state agency in Sabah.

"Up to 2023, we have completed projects amounting to RM1.6 billion in gross development value (“GDV”), equivalent to 29% of all LPPB projects.

“As for our own property development projects, since 1998 we have completed several residential and commercial projects worth RM207.6 million GDV, directly and through joint ventures,” he added.

KTI said it has a total of RM2.3bil GDV ongoing and upcoming projects across Kota Kinabalu, Tuaran, Sandakan and Papar in Sabah, where 30% are projects awarded by LPPB and the remaining are joint venture or own projects to be developed until 2031.

The company targets to list on the ACE Market of Bursa Securities by June 2024.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.