KTI Landmark opens flat at 30 sen on ACE Market debut

• Established in 1984, KTI mainly provides design and construction services to Sabah’s Housing and Town Development Board for urban development and affordable housing for the general public and civil servants, as well as general building construction services.

KUALA LUMPUR (June 19): Shares of KTI Landmark Bhd (KL:KTI) opened flat in its trading debut on Wednesday after the Sabah-based integrated property developer's initial public offering (IPO) on the ACE Market raised RM48 million.

KTI opened at 30 sen apiece on a volume of 7.64 million shares. The stock was trading at 29.5 sen at 9.04am after 10.86 million shares changed hands. The country’s benchmark index was up 0.16%.

The company’s IPO saw its public tranche oversubscribed by 8.14 times. The Bumiputera portion was oversubscribed by 5.17 times, while the non-Bumiputera public category was oversubscribed by 11.11 times.

Shares set aside for eligible persons, Bumiputera investors and select investors offered through private placement were fully taken up.

Established in 1984, KTI mainly provides design and construction services to Sabah’s Housing and Town Development Board for urban development and affordable housing for the general public and civil servants, as well as general building construction services.

To date, KTI has delivered projects with a total gross development value (GDV) of RM1.2 billion, of which RM1 billion has come from the provision of design-and-build construction projects, with the remaining RM207.6 million from its own property development projects.

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.

The sale of new shares raised RM48 million, of which RM20.7 million or 43.1% has been earmarked for general working capital. The company also plans to use 37.5% (RM18 million) of the proceeds for the acquisition of land for development.

The company will also use part of the proceeds for repayment of bank borrowings and to defray listing expenses.

The offer-for-sale, meanwhile, raised RM13.5 million, which will accrue entirely to selling shareholders — managing director Loke Theen Fatt and his wife Chin Mee Leen will retire and relinquish all of her directorships and involvement in KTI once the listing is completed.

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

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