KUALA LUMPUR: Kumpulan Kitacon Bhd, set to list on Bursa Malaysia’s Main Market on January 17, 2023, expects to raise RM51.7 million from its initial public offering (IPO).
Managing Director Tan Ah Kee said the company plans to use 46.4 percent (RM24.0 million) of the proceeds to purchase construction equipment.
In addition, 38.7 percent (RM20.0 million) of the proceeds will be used for land acquisition and construction of a storage and sanitation facility, 8.6 percent (RM4.5 million) for estimated listing costs, and 6.3 percent ( RM 3.3 million) used ) for working capital.
“Looking ahead, our goal is to expand our reach and expertise in township construction as we seek to attract more work from new customers while continuing to maintain our relationships with existing customers.
“We will continuously research and apply advanced construction techniques, such as the use of an aluminum framing system, to improve our productivity and deliver projects on time and on budget, and to the highest quality standards,” he said at the company’s prospectus launch today.
According to Tan, the company has successfully completed a wide range of construction projects, including residential, commercial, industrial, non-residential and institutional buildings.
“We specialize in township construction and pride ourselves on the quality of our construction work, which is evidenced by the awards and recognition from the Construction Industry Development Board of Malaysia (CIDB),” he added.
Based on the increased issued share capital of 500,000,000 shares and an issue price of RM0.68 per share, Kitacon will have a market capitalization of RM340 million.
The company intends to declare an annual dividend equal to at least 25 percent of its after-tax profit, the company said in a separate media statement.
Kitacon is primarily engaged in the construction of residential and non-residential buildings, including commercial, industrial and non-residential buildings. -Bernama
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