KUALA LUMPUR (June7): Sabah-based integrated property developer KTI Landmark Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 8.14 times.
In a statement on Friday, KTI said a total of 6,912 applications seeking 365.69 million new shares were received from the Malaysian public for 40 million new shares that were made available for public subscription.
It said the Bumiputera public portion of shares was oversubscribed by 5.17 times, after a total of 3,037 applications for 123.48 million new shares received.
For the non-Bumiputera public portion, a total of 3,875 applications for 242.21 million new shares were received, which represents an oversubscription rate of 11.11 times.
Meanwhile, the 40 million new shares for its eligible directors, employees and persons who have contributed to the success of KTI Group have also been fully subscribed.
In addition, its placement agent has confirmed that 125 million shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and selected investors have been fully placed out.
KTI group managing director and CEO Dr Gordon Loke said the IPO proceeds will enable the company to acquire land banks for future projects with a focus on residential and commercial properties in Sabah.
Loke said KTI will continue to explore the many potentials and opportunities in the market while continuing to provide the people with affordable homes.
He said the Sabah government was requested to propose a progressive economic plan to the federal government, especially in the preparation of the 13th Malaysia Plan 2026 to 2030.
“The numbers also speak for themselves: In 2021, Sabah's total investments exceeded RM6 billion. By 2023, it was more than RM11 billion, representing an 88% increase in the span of two years.
“This means increased job opportunities, increased disposable income, higher business earnings and expansion of businesses, all drivers of demand for both residential and commercial properties in Sabah,” he added.
KTI is scheduled to list on the ACE Market of Bursa Malaysia on June 19, and aims to raise RM48 million from its IPO.
Under the listing exercise, KTI is issuing 160 million new shares and an offer for sale of 45 million existing shares, representing 20% and 5.6% of its enlarged share capital respectively, at an issue price of 30 sen per share.
Based on the enlarged share capital of 800 million shares, KTI is expected to have a market capitalisation of RM240 million.
All notices of allotment for these shares will be mailed to successful applicants on or before June 14, 2024.
M & A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.