KUALA LUMPUR (Dec 28): Kumpulan Kitacon Bhd has set its initial public offering (IPO) price at 68 sen per share, raising RM51. 74 million to fund the purchase of construction equipment and construction of a storage and refurbishment facility.
Slated in order to list on the Primary Market associated with Bursa Malaysia on Jan 17, 2023, the IPO entails the public issue of 76. 09 million new shares, as well as an offer for sale of 62. 5 mil shares valued at RM42. 5 million by way of private placement to bumiputera investors approved by the particular Ministry of International Trade and Industry.
Breaking down the share allocation for the public issue, 10 million shares will be made available for application by the Malaysian general public, 8. 59 million stocks for eligible directors employees and persons who have contributed in order to the success of the particular group, plus 57. 5 million gives by way of personal placement to institutional and selected traders.
Of the proceeds associated with RM51. 74 million expected to be raised from the public problem, Kitacon has earmarked RM20 million (38. 7%) for that purchase of land plus construction of a storage and refurbishment service, RM18 million (34. 8%) for the particular purchase associated with aluminium formwork systems, plus RM6 mil (11. 6%) for scaffolding and cabins.
Another RM3. 28 million (6. 3%) has been allocated for working capital, while the remaining RM4. 46 million (8. 6%) continues to be ring-fenced with regard to estimated listing expenses.
“We have earmarked RM24 mil, representing fouthy-six. 4% of the gross proceeds raised from your public concern, for the purchase of construction gear, comprising aluminium formwork systems, scaffoldings and cabins in order to cater to our current building projects plus to facilitate the anticipated growth in our construction operations, ” Kitacon said in its prospectus, which was launched upon Wednesday (Dec 28).
“We intend to acquire a piece of land with an approximate area of three acres in order to construct a storage and refurbishment facility with an approximate built-up part of 65, 000 sq ft which will become used as a centralised storage service to house all our own aluminium formwork systems, scaffoldings and cabin rentals that are not in use at our structure sites, ” the company added.
Based on its enlarged issued share capital of 500 million shares and the issue price of 68 sen apiece, Kitacon will have a market capitalisation associated with RM340 million upon list.
“Looking ahead, our goal is to broaden the reach plus expertise in township design as we aim to secure more contracts from new clients while conditioning to foster our business relationships with existing clients.
“Additionally, we will continuously explore and adopt progressive construction techniques such as the use of aluminium framework system in order to improve our productivity and deliver projects within the particular stipulated time, cost plus highest quality standards, ” Kitacon managing director Tan Ah Kee said.
For the six-month period ended June 30, 2022 (6MFY2022), Kitacon posted a profit after tax (PAT) of RM26. 13 mil, higher than the RM21. 34 million within the same period a year earlier. This was carried by a higher PAT margin associated with 11. 1% for 6MFY2022 as compared to 8. 9%, because revenue clocked in lower at RM234. 73 million versus RM238. 64 mil.
Going forward, Tan stated the organization offers an outstanding orderbook of RM853. 6 million.
Touching on Kitacon’s dividend policy, the business said it intends to distribute dividends of at least 25% of its annual audited PAT attributable to its shareholders.
“This will allow our investors to participate in the profits of our group while leaving adequate reserves for the future associated with our team, ” this added.