KUALA LUMPUR (Nov 4): Property developer KEB Bhd's initial public offering (IPO) is fully subscribed, with applications for its Malaysian public portion reaching 1.01 times the shares available ahead of its ACE Market listing on Nov 16.
The company received 2,126 applications for 44.47 million shares worth RM15.57 million, compared with the 44.12 million shares offered to the Malaysian public, according to a Bursa Malaysia filing on Wednesday.
The Bumiputera portion recorded a subscription rate of 1.24 times, with 1,071 applications for 27.31 million shares.
However, the non-Bumiputera portion attracted 1,055 applications for 17.16 million shares, below the 22.06 million shares initially allocated. The shortfall was addressed through the reallocation provisions under the IPO.
Meanwhile, the 22.06 million shares reserved for eligible persons were fully subscribed, while all shares allocated for private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry were fully placed out.
Notices of allotment will be issued by Nov 12.
KEB's IPO, priced at 35 sen per share, comprises 138.54 million new shares and an offer for sale of 88.24 million existing shares.
The exercise is expected to raise RM79.37 million, of which RM48.49 million will go to the company, while RM30.88 million will go to shareholders Datuk Lim Kim Chong and his son Vinson Lim.
Of the proceeds raised by the company, RM19 million has been earmarked for land acquisitions, RM14.89 million for working capital and RM8.5 million for repayment of bank borrowings. The remaining RM6.1 million will cover listing expenses.
Based in Cheras, KEB develops residential, industrial, commercial and mixed-use properties, primarily in the central region of Malaysia.
The group has four ongoing developments with a combined gross development value of RM1.36 billion and two future projects worth RM382.73 million.
At the IPO price, KEB is expected to have a market capitalisation of RM308.83 million, valuing the company about six times its earnings for the financial year ended Dec 31, 2025.
M&A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.