KUALA LUMPUR: Property developer KEB Bhd has entered into an underwriting agreement with M & A Securities Sdn Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.
In a statement, KEB said its IPO comprises a public issue of 138.54 million new shares and an offer for sale of 88.24 million existing shares, bringing the total offering to 226.78 million shares.
Under the agreement, M & A Securities will underwrite 66.18 million new shares, comprising 44.12 million shares for the Malaysian public and 22.06 million shares for eligible directors, employees and other persons who have contributed to the group.
Of the remaining new shares, 22.06 million will be placed out to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry, while 50.30 million will be offered to selected investors.
The offer for sale comprises 88.24 million existing shares, representing 10% of the enlarged issued share capital, to be placed out to Bumiputera investors approved by the ministry.
KEB said proceeds from the issuance of new shares would be used for landbank acquisition, working capital for property development projects, repayment of bank borrowings and listing expenses.
The group, which ventured into property development in 2004, is involved in residential, industrial, commercial and mixed-use developments.
It has completed 14 property development projects and currently has two ongoing developments with an estimated total gross development value (GDV) of RM773.29mil.
KEB also has four future projects with an estimated total GDV of RM940.74mil.
The group undertakes construction activities through KEB Utama Sdn Bhd, a CIDB Grade G7 registered contractor.
Managing director Datuk Lim Kim Chong said the proposed listing would support the group's plans to expand its development pipeline, acquire additional landbank and strengthen its financial position.
“This IPO represents an important step in strengthening our platform for future growth, as it will support our plans to expand our development pipeline, acquire additional landbank and enhance our financial flexibility as we continue delivering value-accretive property developments.”
M & A Securities is the principal adviser, sponsor, placement agent and underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.
