Kitacon’s goal is to broaden its reach and expertise in township construction. (kitacon.com.my pic)
PETALING JAYA: Construction group Kumpulan Kitacon Bhd, enroute to a listing on the Main Market of Bursa Malaysia on Jan 17, expects to raise RM 51.7 million from its initial public offering (IPO).
Managing director Tan Ah Kee said the company plans to use 46.4% (RM24 million) of the proceeds to purchase construction equipment.
Additionally, 38.7% (RM 20 million) of the proceeds will be used for land acquisition and the construction of a storage and refurbishment facility, 8.6% (RM 4.5 million) for listing expenses, and 6.3% (RM 3.3 million) for working capital.
“Looking ahead, our goal is to broaden our reach and expertise in township construction as we aim to secure more contracts from new clients while continuing to foster our business relationships with existing clients.
“We will continuously explore and adopt progressive construction techniques such as the use of an aluminium framework system to improve our productivity and deliver projects within the stipulated time and cost as well as the highest quality of standards,” he said at the launch of the company’s prospectus today.
Tan said the company has successfully completed a wide range of construction projects, including residential, commercial, industrial, purpose-built, and institutional buildings.
“We specialise in township construction and pride ourselves on the quality of our construction works, (evidenced) by the awards and recognitions from the Construction Industry Development Board of Malaysia (CIDB),” he added.
Based on the enlarged issued share capital of 500 million shares and an issue price of RM0.68 per share, Kitacon will have a market capitalisation of RM340 million.
The company intends to declare a yearly dividend, equivalent to at least 25% of its profit after tax, the company said separately in a media statement.
Kitacon is principally involved in constructing residential and non-residential buildings, including commercial, industrial, and purpose-built buildings.