KUALA LUMPUR: Construction services provider, Kumpulan Kitacon Bhd made its debut on the Main Market of Bursa Malaysia at 99 sen, representing a 45.6 per cent premium over its initial public offering (IPO) price of 68 sen.
Kitacon said its public issue was well received and was oversubscribed by 11.46 times.
The company raised a total of RM57.1 million proceeds through an offering of 76.08 million new ordinary shares at 68 sen apiece.
Of the total proceeds raised, RM24.0 million has been allocated for the purchase of construction equipment while RM20.0 million was earmarked for the purchase of land and construction of a storage and refurbishment facility.
Kitacon managing director Tan Ah Kee said the company was excited on its growth prospects as it embarked on the new journey.
"We will continue to work hard with the same resolute focus to deliver sustainable growth. We believe Kitacon will grow in strength over the coming years and aim to reward our shareholders for their trust and confidence in accordance with our dividend policy to pay out at least 25 per cent of the profit after tax," he added.
For the nine-month financial period ended Sept 30, 2022, the company reported an unaudited combined net profit of RM35.2 million on the back of RM350.8 million revenue.