KUALA LUMPUR (April 16): KTI Landmark Bhd (KTI) has signed an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement on Tuesday, the Sabah-based integrated property developer said the initial public offering (IPO) comprises a public issue of 160 million new shares and an offer for sale of 45 million existing shares, representing 20% and 5.6% of the enlarged share capital of KTI respectively.

Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 80 million new shares made available to the Malaysian public and pink form allocations.

The remaining 80 million new shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

As for the offer for sale portion, 20 million shares are reserved for private placement to Bumiputera investors approved by Miti while the remaining 25 million shares will be allocated by way of private placement to selected investors.

KTI group managing director and CEO Dr Gordon Loke said KTI has grown organically in the past 40 years since its inception as a general building construction services provider.

“Most notably, the company has expanded its construction services to include design and build as well as property development, complemented by its in-house manufacturing of industrialised building system (IBS) components.

“Our products' highest IBS score is 94% and QLASSIC is 77%,” he said.

Loke said the company has a proven track record as a design-and-build contractor to Lembaga Pembangunan Perumahan dan Bandar (LPPB), the state agency in Sabah.

“Up to 2023, we have completed projects amounting to RM1.6 billion in gross development value (GDV), equivalent to 29% of all LPPB projects.

“As for our own property development projects, since 1998 we have completed several residential and commercial projects worth RM207.6 million GDV, directly and through joint ventures,” he said.

Currently, KTI has a total of RM2.3 billion GDV on-going and upcoming projects across Kota Kinabalu, Tuaran, Sandakan and Papar in Sabah, where 30% are projects awarded by LPPB and the remaining are joint venture or its own projects to be developed until 2031.

The company’s notable projects include among others Taman Wawasan in Beaufort, Taman La Gloxinia in Papar, Taman Seri Lemawang in Tuaran as well as Taman Nelly, Taman Lavender and The Logg in Kota Kinabalu.

For the financial year ended 2022, KTI posted net profit RM10.48 million on the back of revenue RM112.88 million.

Earnings per share was 1.3 sen.

KTI targets to list on the ACE Market of Bursa Securities by June 2024.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.