Wednesday 24 Apr 2024
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KUALA LUMPUR (Jan 11): The public portion of Kumpulan Kitacon Bhd’s initial public offering (IPO) was oversubscribed by 11.46 times, the company said, with applications for 124.58 million shares received for the 10 million shares available for application by the Malaysian public.

Kitacon, which sought to raise RM51.74 million from the IPO, said that another 8.59 million new shares to be issued to eligible directors, employees and persons have been fully subscribed. 

Kitacon is also issuing 57.5 million new shares by way of private placement to institutional and selected investors. In total, the IPO’s new issuance totalled 76.09 million shares at 68 sen apiece — representing 15.22% of Kitacon’s enlarged share capital of 500 million shares. 

Meanwhile, Kitacon’s existing shareholders are also offering the sale of 62.5 million shares — representing 12.5% of Kitacon’s enlarged share capital — via private placement for a sum of RM42.5 million. 

According to Kitacon, the IPO's sole placement agent RHB Investment Bank Bhd has confirmed that all the shares under the private placements have been fully placed out.

“The notices of allotment will be mailed to all successful applicants on Jan 16, 2023,” it added. 

Of the proceeds of RM51.74 million expected to be raised from the public issue, Kitacon has earmarked RM20 million (38.7%) for the purchase of land and construction of a storage and refurbishment facility, RM18 million (34.8%) for the purchase of aluminium formwork systems, and RM6 million (11.6%) for scaffolding and cabins. 

Another RM3.28 million (6.3%) has been allocated for working capital, while the remaining RM4.46 million (8.6%) has been ring-fenced for estimated listing expenses. 

Based on Kitacon’s enlarged share capital, Kitacon will have a market capitalisation of RM340 million upon listing. The shares will be listed on Bursa Malaysia’s Main Market on Jan 17. 

RHB Investment Bank is the principal adviser, sole underwriter and sole placement agent for the IPO.

Edited ByIsabelle Francis
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