KUALA LUMPUR (Oct 13): Township construction company Kumpulan Kitacon Bhd said it received the Securities Commission Malaysia’s (SC) approval on Thursday (Oct 13) to list on the Main Market of Bursa Malaysia.

The group said it intends to utilise the proceeds from its initial public offering (IPO) to support its business growth, and further strengthen its footing in the construction industry.

“We have come a long way since our humble beginnings in 1990, and are grateful to our people, customers and business partners for supporting us on our 32-year journey so far.

“We are confident that we will be able to grow our business moving forward, leveraging long established business relationships which we have built with our customers over the years,” said Kitacon managing director Tan Ah Kee in a statement.

According to Kitacon’s prospectus exposure dated July 5, the group will use the IPO proceeds for the purchase of construction equipment, purchase of land, and construction of a storage and refurbishment facility, as well as for working capital, and to defray the estimated listing expenses.

Kitacon specialises in township construction, which includes the construction of both residential and non-residential buildings within a development.

The listing exercise entails the public issuance of 76.09 million new shares in Kitacon, coupled with an offer of sale of 62.5 million existing shares by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

Of the shares allocated for the public issue, 10 million will be made available to the Malaysian public, followed by 8.59 million to the group’s eligible directors, employees and persons who have contributed to its success.

Meanwhile, the remaining 57.5 million will be allocated to institutional and selected investors by way of private placement.

RHB Investment Bank Bhd is the principal adviser, sole underwriter and sole placement agent for the IPO.

For the financial year ended Dec 31, 2021 (FY2021), Kitacon posted a profit after tax of RM41.83 million, compared with RM39.2 million in FY2020 and RM54.79 million in FY2019.

As for revenue, the group logged RM455.5 million in FY2021, versus RM489.65 million in FY2020 and RM581.52 million in FY2019.