KTI Landmark's IPO oversubscribed 8.14 times

KUALA LUMPUR: ACE Market-bound integrated property developer KTI Landmark Bhd's initial public offering has been oversubscribed 8.14 times.

In a statement, the company said a total of 6,912 applications seeking 365.69 million new shares were received from the Malaysian public for 40 million new shares that were made available for public subscription.

The Bumiputera public portion of shares was oversubscribed 5.17 times, with 3,037 applications for 123.48 million new shares were received.

For the non-Bumiputera public portion, a total of 3,875 applications for 242.21 million new shares were received, which represents an oversubscription rate of 11.11 times.

Meanwhile, the 40 million new shares for its eligible directors, employees and persons who have contributed to the success of KTI Group have also been fully subscribed.

In addition, the placement agent, M&A Securities Sdn Bhd, has confirmed that 125 million shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and selected investors have been fully placed out.

Group managing director and CEO Gordon Loke said the IPO proceeds of RM48mil will enable the company to acquire landbank for future projects with a focus on residential and commercial properties in Sabah.

Part of the proceeds will be used to supplement its general working capital requirements for the ongoing The Logg’s mixed development project as part of its strategy to reduce the dependency on external financing and allow the company to undertake more projects concurrently.

"We currently have two IBS production yards in Tuaran and Kinarut, and we want to expand the production capability for IBS casting activities with the addition of a new IBS production line in our latest project in Alam Mesra,” said Loke.

Under the listing exercise, KTI is issuing 160.0 million new shares and an offer for sale of 45.0 million existing shares, representing 20.0% and 5.6% of its enlarged share capital respectively, at an issue price of RM0.30 per share.

Based on the enlarged share capital of 800 million shares and issue price of 30 sen a share, KTI is expected to have a market capitalisation of RM240mil.

All notices of allotment for the shares will be mailed to successful applicants on or before June 14, 2024.

The company is scheduled to list on the market on June 19, 2024.