KUALA LUMPUR: Sabah-based property developer KTI Landmark Bhd (KTI) has received the go-ahead from Bursa Malaysia to launch its initial public offering (IPO) on the local stock exchange's ACE Market.
The company intends to use the IPO funds to support its growth in the construction and real estate industries, said its managing director and chief executive officer, Dr. Gordon Loke.
Loke said the approval of the listing is a critical turning point in the business's development as a publicly traded company.
He added that the move is poised to propel KTI into its next phase of growth, facilitating access to the equity capital market for future fundraising activities and enhancing financial flexibility to seize upcoming growth opportunities.
KTI provides design-build construction services and also develops properties. Its in-house construction services are reinforced by its 24-year experience in producing industrialized building system (IBS) components.
The company's construction arm caters to urban development, affordable housing initiatives, and general building construction services for both the public and private sectors.
The IPO entails the issuance of 160 million new shares and an offer for sale of 45 million existing shares, constituting 20 per cent and 5.6 per cent of KTI's enlarged share capital, respectively.
Of the new shares, 40 million will be available to the Malaysian public via balloting, while 40 million are earmarked for eligible directors, employees, and contributors under pink form allocations.
Additionally, 80 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
On the offer for sale front, 20 million shares are designated for private placement to Bumiputera investors endorsed by MITI, with the remaining 25 million shares allocated through private placement to select investors.