KTI shares open unchanged at IPO price of 30 sen

From left: KTI Landmark independent director Datuk Tan Kok Liang, independent director Lim Guik Moi, independent director Chua Chai Hua, chairman Datuk Haji Hamzah Haji Ghazalli, managing director and CEO Gordon Loke, promoter and substantial shareholder Chin Mee Leen, promoter Nelly Loke, executive director Stella Loke, executive director Wilson 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: Shares in KTI Landmark Bhd were unchanged as the Sabah-based integrated property developer made its trading debut on the ACE Market of Bursa Malaysia.

After 90 minutes of trading, the company’s stock valuation remained flat against the initial public offering (IPO) price of 30 sen a share with 19.47 million shares traded.

The tepid response from investors comes after KTI had successfully raised RM48mil from its IPO exercise to partly fund its acquisition of development land for RM18mil.

The group had said a further RM20.7mil will be allocated from the proceeds as working capital while RM300,000 will be utlised for upgrading software and systems.

Of the remaining funds, RM2.2mil will be used to upgrade and expand its existing casting yard or industrialised building system facility, followed by RM3mil for the repayment of bank borrowings and RM3.8mil to offset the estimated listing expenses.

Following its market debut, the group announced plans to launch two residential projects with a combined gross development value (GDV) of RM599.6mil by 2028.

In a statement, group managing director and chief executive officer Gordon Loke said the upcoming launches encompass a diverse range of offerings including three phases of affordable landed homes in Sandakan and a mixed development – Ayuria Place, Alamesra – in Kota Kinabalu.

He said the Sandakan project, which will comprise 310 double-storey terrace houses and has an estimated GDV of RM107.9mil, is a design-and-build project with Sabah state agency Lembaga Pembangunan Perumahan dan Bandar.

“The group has received the development order but has resubmitted the amended development plans for approval and is awaiting the approval to commence construction works,” he added.

Meanwhile, the Ayuria Place development with a RM491.7mil GDV will feature three blocks of 39-storey 1,269 apartment units with sizes between 650 and 1,000 sq ft.

According to Loke, the development is poised to be one of the landmark projects in Kota Kinabalu as it is strategically located in the city centre and within proximity of various educational institutions, as well as features convenient access to major highways.

In the financial year ended Dec 31, 2023 , KTI recorded sales of about RM132.9mil while unbilled sales hit a record high of RM711.3mil.

During the same period, KTI’s net profit rose 31.9% to RM13.8mil from RM10.5mil a year earlier on higher gross profit, while revenue increased 6.5% to RM120.2mil from RM112.9mil in the previous year.

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