KUALA LUMPUR (Dec 9): Kumpulan Kitacon Bhd has signed an underwriting agreement with RHB Investment Bank Bhd (RHB IB) to underwrite a total of 18.59 million shares in conjunction with its initial public offering (IPO) to list on the Main Market of Bursa Malaysia Securities Bhd.

In a statement on Friday (Dec 9), the construction services company said its IPO entails a public issue of 76.09 million new shares and an offer for sale of 62.5 million existing shares.

It said of the 76.09 million public issue shares, 57.50 million will be placed out to institutional and selected investors.

Another 8.59 million will be made available for application by eligible directors, employees and persons who have contributed to the success of Kitacon, while the remaining 10 million new shares will be made available for application by the Malaysian public via balloting.

Another 62.5 million shares will be offered to Bumiputera investors approved by the Ministry of International Trade and Industry.

Kitacon non-independent executive director and managing director Tan Ah Kee said the company aims to entrench its position as a construction services provider by focusing on core competency in building construction.

Meanwhile, RHB IB ED and head of group capital markets and advisory Jaimie Sia Zui Keng said Kitacon's expertise and experience in building construction, together with deeply established business relationships, strongly position the company for growth.

The proceeds from the IPO will be used primarily for purchases of construction equipment, purchases of land, construction of storage and refurbishment facilities, and working capital.

Kitacon is expected to list in January 2023.

RHB IB is the principal adviser, sole underwriter, and sole placement agent for this IPO exercise.