KUALA LUMPUR (Jan 16): ACE Market-bound KJTS Group Bhd said its shares offered to the public has been oversubscribed by 31.28 times.
In a statement on Tuesday, the building support services provider said it received 9,632 applications for the 1.11 billion shares worth RM299.78 million.
It said there were 5,803 applications for the 562.24 million shares under the Bumiputera portion, resulting in an oversubscription rate of 31.69 times. The public portion saw 3,829 applications for 548.1 million shares, indicating an oversubscription rate of 30.86 times.
Meanwhile, the 15 million shares allocated for eligible persons were fully subscribed, and the 168.63 million shares designated for selected investors were fully placed.
“The remarkable reception (oversubscription) of our IPO (initial public offering) reflects the market’s trust in KJTS’ strategic vision and prospects,” said KJTS managing director Lee Kok Choon.
“With a strong emphasis on sustainability, KJTS Group is positioned to stimulate growth and elevate our services throughout Malaysia, Singapore and Thailand, with a specific focus on the cooling energy market. The positive response from investors underscores the market’s confidence in KJTS Group’s capabilities and its commitment to forging a sustainable and energy-efficient future,” he added.
KTJS has set its institutional and final retail price for the IPO shares at 27 sen. Based on that price, the group is expected to have a market capitalisation of RM185.76 million upon listing, implying a valuation of 26 times its profit after tax attributed to owners of the company of RM6.87 million, and earnings per share of one sen for the financial year ended Dec 31, 2022.
KJTS aims to raise about RM58.9 million from the listing. The stock is set to debut on the ACE Market of Bursa Malaysia on Jan 26.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, underwriter and bookrunner for the listing exercise.