KUALA LUMPUR (April 8): Property developer KTI Landmark Bhd said on Monday that it has secured approval for its initial public offering (IPO) on ACE Market from Bursa Malaysia.

The approval from Bursa Malaysia marks another step forward for the IPO since the Sabah-based company, which also provides construction services for public and private sectors, filed its draft prospectus on July 7, 2023.

“The IPO will enable KTI (Landmark) to tap into the equity capital market for future fundraising and provide us the financial flexibility to pursue future growth opportunities as and when they arise,” its managing director Dr Gordon Loke said in a statement.

Established in 1984, KTI Landmark mainly provides design and construction services to Sabah’s state agency Housing and Town Development Board for urban development and affordable housing for the general public and civil servants’ housing projects, as well as general building construction services.

The company has ongoing projects totalling RM220.7 million in estimated gross development value, including the remaining phases of Taman Seri Lemawang residential project worth RM124 million, according to the draft prospectus.

The IPO will involve the issuance of 160.0 million new shares and an offer for sale of 45.0 million existing shares. All in all, the IPO offers up to a 25.6% stake in KTI Landmark’s enlarged share capital.

Under the public issue, 40.0 million new shares will be available to the Malaysian public, 40.0 million new shares for eligible persons under pink form allocations, while the remaining 80.0 million new shares are reserved for private placement to Bumiputera investors.

The offer-for-sale tranche will see 20.0 million existing shares set aside for private placement to Bumiputera investors, and the remaining 25.0 million shares will be allocated by way of private placement to select investors.

Proceeds from the sale of new shares will be used to partly fund the acquisition of Alamesra land in Kota Kinabalu worth RM74 million, the expansion of casting yard and factory, the upgrading of software and systems, and as working capital.

The company will also use part of the proceeds for repayment of bank borrowings and to defray listing expenses.

Proceeds from the sale of existing shares, meanwhile, will go entirely to the selling shareholders — managing director Loke Theen Fatt, and his wife Chin Mee Leen who will retire and relinquish all of her directorships and involvement in KTI Landmark once the listing is completed.

M & A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.