Sabah-based integrated property developer KTI Landmark Berhad expects to raise RM48 million under its listing exercise on the ACE Market of Bursa Malaysia Securities Berhad.
Out of which RM20.7 million of the proceeds raised will be to supplement its general working capital requirements for The Logg’s project, which include construction costs (building and infrastructure cost), consultants’ and professional fees, and local authority fees for the on-going projects.Logg is the Company’s first mixed development project and is also KTI’s first joint development project with Lembaga Pembangunan Perumahan dan Bandar, the state agency in Sabah.
The landmark property with an estimated gross development value (“GDV”) of about RM1.0 billion to be developed on a 5-acre land in Luyang, Sabah by December 2025, comprising two blocks of condominiums, one block of apartment, a 4-star hotel and a commercial building.
A further RM18 million (37.5%) of the proceeds will be used to partly fund the acquisition of landbank in Sabah within the vicinity of its existing landbank for future project in Alamesra, Kota Kinabalu.
Currently, it has a total of RM2.2 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 2028.
For the financial year ended 31 December 2023 (“FY2023”), KTI’s net profit rose 31.9% to RM13.8 million, from RM10.5 million a year ago (“FY2022”) on higher gross profit (“GP”). FY2023 revenue increased 6.5% to RM120.2 million from RM112.9 million in FY2022.
During the period under review, the Company’s GP expanded to RM35.6 million, translating to a GP margin of 29.6%, versus 27.3% in FY2022 due to a mix of contributions from projects with higher GP margins. Net margin for FY2023 also improved to 11.5% from 9.3% a year ago.
Under the listing exercise, KTI is issuing 160.0 million new shares and an offer for sale of 45.0 million existing shares, representing 20.0% and 5.6% of its enlarged share capital respectively, at an issue price of RM0.30 per share.
Based on the enlarged share capital of 800.0 million shares, KTI is expected to have a market capitalisation of RM240.0 million.
The IPO is open for subscription from today to 4 June 2024. KTI is scheduled to list on the ACE Market of Bursa Securities on 19 June 2024.
M & A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
