KUALA LUMPUR (Sept 3): KJTS Group Bhd (KL:KJTS), which debuted on the ACE Market in January last year, has proposed a special issue of up to 102.05 million new shares or 12.5% of its enlarged share capital to meet its Bumiputera equity condition.
Under Bursa Malaysia’s listing requirements, the company must allocate at least 12.5% of its shares to Bumiputera investors within a year of meeting the profit requirements for a Main Market transfer, or within five years of listing.
In a filing on Wednesday, the group said that it had achieved the profit threshold on Dec 31, 2024, giving it until end-2025 to comply.
KJTS provides integrated building support services across Malaysia, Singapore and Thailand, with core operations spanning cooling energy, cleaning and facilities management.
The issue price will be set later, based on a discount of not more than 10% to the five-day volume-weighted average price (VWAP). For illustration, the company assumed an issue price of RM1.42 per share — about a 10% discount to its five-day VWAP of RM1.58 as at Aug 12, 2025.
At that price, KJTS expects to raise up to RM145.1 million, which will be channelled into expanding its cooling energy segment, particularly following its acquisition of Malakoff Utilities Sdn Bhd from Malakoff Corp Bhd (KL:MALAKOF) in February this year.
The proceeds will also go towards upgrading its infrastructure at KL Sentral, working capital, debt repayment as well as for expenses related to the special issue exercise.
“The proposed special issue is expected to contribute positively to the future earnings of the KJTS group when the benefits from the utilisation of proceeds are realised,” said KJTS.
The exercise remains subject to approvals from Bursa, the Securities Commission Malaysia, the Ministry of Investment, Trade and Industry and KJTS shareholders at an extraordinary general meeting. Completion is targeted for the fourth quarter of 2025.
UOB Kay Hian has been appointed as the adviser and placement agent.
Shares of KJTS closed two sen or 1.21% higher at RM1.67 on Wednesday, valuing the group at RM1.15 billion.