KUALA LUMPUR: KJTS Group Bhd
aims to raise RM58.9 million from its initial public offering (IPO) upon its listing on the ACE Market of Bursa Malaysia on Jan 26, 2024.
Executive director Sheldon Wee said that the IPO comprised the issuance of 218.03 million new shares at a retail price of 27 sen per share, adding that the bulk of proceeds will be utilised for the company’s business expansion, working capital and to defray listing expenses.
"It paves the way for us to enhance our services and expand our reach in Malaysia, Singapore and Thailand, and we are optimistic about the future and opportunities this IPO opens for our company,” he said in a speech during the launch of the prospectus today
According to Wee, RM44.9 million will be used for business expansion, including RM40.4 million for the expansion of the Cooling Energy segment and RM4.5 million for the expansion of offices in Malaysia, Thailand, and Singapore.
"Meanwhile, the remaining RM8.1 million will be allocated for working capital and RM5.8 million to defray listing expenses,” he said in a press conference.
He said 15 million shares will be allocated for private placement, of which 1.70 million shares will be earmarked for eligible directors, 2.40 million shares for eligible key senior management, 10.46 million shares for eligible employees, and 0.44 million shares for persons who have contributed to the group's success.
Meanwhile, 34.4 million shares will be allocated to the Malaysian public via balloting.
The company said 168.63 million are allotted for subscription by institutional and selected investors and 49.40 million shares for retail offering.
The shares for public subscription are open for application starting from today until 5 pm on Jan 11, 2024.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole bookrunner. - Bernama
