KUALA LUMPUR: KEB Bhd has set its initial public offering (IPO) price at 35 sen per share, aiming to raise RM48.49 million from its proposed listing on the ACE Market of Bursa Malaysia.
The property developer said the IPO involves the issuance of 138.54 million new shares.
Of the total proceeds, RM19 million will be allocated for landbank acquisition, RM14.89 million for working capital to support project development and RM8.5 million for repayment of bank borrowings.
The remaining RM6.1 million will be used for listing expenses.
Upon listing, KEB will have a market capitalisation of RM308.83 million.
Its managing director Datuk Lim Kim Chong said the prospectus launch marked a significant milestone in the company's corporate journey.
"The IPO will strengthen our financial position and provide us with additional resources to expand our landbank, support project development activities and enhance our capacity to pursue future growth opportunities," said Lim at the IPO launch today.
Since venturing into property development in 2004, KEB has completed 14 projects spanning residential, industrial, commercial and mixed-use developments.
The company currently has four ongoing developments with a combined estimated gross development value (GDV) of RM1.36 billion, alongside two future projects with an estimated GDV of RM382.73 million.
Collectively, the six projects have an estimated GDV of RM1.74 billion.
KEB also has a landbank of 24.29 hectares including land under a joint venture arrangement with landowners, to support its future development plans.
Applications for the IPO will close on Nov 2, and listing is scheduled for Nov 16.
M&A Securities Sdn Bhd is the principal adviser, sponsor, placement agent and underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.
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