KUALA LUMPUR: Sabah-based developer KTI Landmark Bhd aims to raise RM48 million under its listing exercise on the ACE Market of Bursa Malaysia for expansion.
KTI is scheduled to list on the ACE Market of Bursa Securities on June 19, 2024.
It plans to use RM20.7 million (43.1 per cent) of the proceeds raised from the initial public offering (IPO) to supplement its general working capital requirements for The Logg's project.
This includes construction costs, consultants' and professional fees, and local authority fees for the ongoing projects.
A further RM18 million (37.5 per cent) of the proceeds will be used to partly fund the acquisition of land in Sabah within the vicinity of its existing landbank for future projects in Alamesra, Kota Kinabalu.
The remainder of the proceeds will be used to purchase the new industrialised building system (IBS) production line, amounting to RM2.1 million (4.5 per cent), RM0.4 million (0.7 per cent) to upgrade software and systems, RM3 million (6.3 per cent) to repay bank borrowings, and the remaining RM3.8 million (7.9 per cent) for estimated listing expenses.
KTI is issuing 160.0 million new shares and making an offer for the sale of 45.0 million existing shares. This represents 20 per cent and 5.6 per cent of its enlarged share capital, respectively, at an issue price of 30 sen per share.
KTI Group managing director and chief executive officer, Dr Gordon Loke, said The Logg is the company's first mixed development project and also its first joint development project with Lembaga Pembangunan Perumahan dan Bandar (LPPB), the state agency in Sabah.
The project with an estimated gross development value (GDV) of about RM1 billion is to be developed on 2.02 hectares (ha) of land in Luyang, Sabah, by December 2025, comprising two blocks of condominiums, one block of apartments, a 4-star hotel, and a commercial building.
"The allocation of proceeds for our working capital requirements will reduce our dependency on external financing and allow us to undertake more projects concurrently," he said in a statement.
KTI Landmark entered into a conditional sale and purchase agreement with Millennium Amber Sdn Bhd on January 9, 2023, for the acquisition of Alamesra Lands, which is earmarked for its Ayuria Place Project in Alamesra, Kota Kinabalu, for RM74 million in cash.
The land, measuring 10.64ha, will be developed into high-rise residential properties in multiple phases until 2028, with an estimated GDV of about RM873.1 million.
To date, KTI has delivered projects with a total GDV of RM1.2 billion, of which RM1 billion comes from the provision of design and build construction projects and the remaining RM207.6 million from its own property development projects.
Currently, it has a total of RM2.2 billion in GDV on-going and upcoming projects across Kota Kinabalu, Tuaran, Sandakan, and Papar in Sabah, of which 30 per cent are projects awarded by LPPB and the remaining are joint ventures or its own projects to be developed until 2028.
The company's notable projects include Taman Wawasan in Beaufort, Taman La Gloxinia in Papar, Taman Seri Lemawang in Tuaran, and Taman Nelly, Taman Lavender, and The Logg in Kota Kinabalu.