Kumpulan Kitacon Bhd, a construction services provider, has made its official debut on the Main Market of Bursa Malaysia at 99 sen per piece representing a 45.6% premium over the initial public offering (IPO) price of 68 sen.
With the public issue being oversubscribed by 11.46 times, the company raised proceed of amounting to RM57.1 million through an offering of 76.08 million new ordinary shares at 68 sen apiece.
Kitacon’s managing director Tan Ah Kee has said that the company will continue to work hard with the same resolute focus to deliver sustainable growth.
"We believe Kitacon will grow in strength over the coming years and aim to reward our shareholders for their trust and confidence in accordance with our dividend policy to pay out at least 25 per cent of the profit after tax.”
Of the total proceeds raised, RM24 million has been allocated for the purchase of construction equipment while RM20 million will be earmarked for the purchase of land and construction of a storage and refurbishment facility.
For the nine-month financial period ended on the 30th of September 2022, the company reported an unaudited combined net profit of RM35.2 million on the back of RM350.8 million revenue.