KUALA LUMPUR: KEB Bhd, a property developer with in-house construction capabilities and a focus on residential, industrial, commercial and mixed-use developments in Malaysia, has entered into an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Since venturing into property development in 2004, KEB has accumulated more than 20 years of experience in developing residential, industrial, commercial and mixed-use properties. The group is complemented by its in-house construction capabilities via KEB Utama Sdn Bhd, a CIDB Grade G7 registered contractor, which allows KEB to maintain closer oversight over project execution, quality standards and delivery timelines.
To date, KEB has completed 14 property development projects. Its current pipeline comprises two ongoing developments with an estimated total gross development value (GDV) of RM773.29 million, as well as four future projects with an estimated total GDV of RM940.74 million.
The proceeds from the public issue are intended for landbank acquisition, working capital for project development, repayment of bank borrowings and defraying listing expenses. With its existing portfolio of completed projects, active pipeline and internal construction capabilities, KEB is well placed to build on its operating track record and pursue further opportunities in its target markets.
KEB’s IPO comprises a public issue of 138.54 million new ordinary shares and an offer for sale of 88.24 million existing ordinary shares, representing a total of 226.78 million shares.
The public issue of 138.54 million new shares is allocated as 44.12 million shares or 5% of the enlarged issued share capital will be made available for application by the Malaysian public; 22.06 million shares or 2.5% of the enlarged issued share capital, will be allocated to eligible directors, employees, and other persons who have contributed to the success of the group; 22.06 million shares or 2.5% of the enlarged issued share capital are reserved for private placement to identified Bumiputera investors approved by Ministry of Investment, Trade and Industry (Miti); and 50.3 million shares or 5.7% of the enlarged issued share capital for private placement to selected investors.
There is also offer for sale of 88.24 million existing shares or 10% of the enlarged issued share capital by way of private placement to Bumiputera investors approved by Miti.
Under the agreement, M&A Securities will underwrite a total of 66.18 million new ordinary shares, comprising 44.12 million shares made available for application by the Malaysian public and 22.06 million shares allocated to eligible directors, employees and persons who have contributed to the success of the group.
KEBBhd managing director Datuk Lim Kim Chong said, “The underwriting agreement marks another key milestone towards KEB’s proposed ACE Market listing. The IPO will support the group’s future growth by helping it expand its development pipeline, acquire more landbank and strengthen its financial flexibility.”
M&A Equity Holdings Bhd managing director Datuk Bill Tan said they are pleased to formalise this underwriting agreement with KEB as the group advances towards its proposed ACE Market listing.
“Backed by more than 20 years of property development experience, an established track record, ongoing and future projects, as well as in-house construction capabilities, KEB is well positioned to leverage the listing as a platform for its next phase of growth.”
Eco Asia Capital Advisory SdnBhd group CEO Datuk Kelvin Khoo said, “KEB’s IPO is backed by its ongoing developments, future launches and available landbank. The proceeds will strengthen the group’s ability to pursue expansion opportunities and carry out its medium-term growth plans in Malaysia’s property market.”
M&A Securities Sdn Bhd is the principal adviser, sponsor, placement agent and underwriter for this IPO, while Eco Asia Capital Advisory Sdn Bhd serves as the financial adviser of the IPO.
