KUALA LUMPUR: Property developer KEB Bhd expects to raise RM48.49mil from its initial public offering (IPO) ahead of its listing on the ACE Market of Bursa Malaysia on Nov 16.
The company, which launched its prospectus today, is offering 138.54 million new shares at an issue price of 35 sen apiece.
Of the proceeds, RM19mil will be used to acquire land for development, RM14.89mil for project development working capital, RM8.5mil to repay bank borrowings and RM6.1mil for listing expenses.
KEB has completed 14 property development projects since entering the sector in 2004.
The group currently has four ongoing developments with a combined estimated gross development value (GDV) of RM1.36bil and two future projects worth RM382.73mil.
Together, the six projects have an estimated GDV of RM1.74bil.
KEB also has a landbank of approximately 60.01 acres, including land held under a joint venture arrangement with landowners.
The group undertakes residential, industrial, commercial and mixed-use developments, supported by its in-house construction arm, KEB Utama Sdn Bhd, a CIDB Grade G7 registered contractor.
KEB managing director Datuk Lim Kim Chong said the IPO proceeds would strengthen the group's financial position and support its landbank expansion and project development activities.
“Over the years, we have built our property development business on a combination of development experience, disciplined execution and a focus on delivering projects that meet market demand.
“The IPO will strengthen our financial position and provide us with additional resources to expand our landbank, support project development activities and enhance our capacity to pursue future growth opportunities,” Lim said.
Applications for the public issue open today and close on Nov 2.
M&A Securities Sdn Bhd is the principal adviser, sponsor, placement agent and underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.
