KEB signs underwriting agreement ahead of ACE Market IPO

KUALA LUMPUR: KEB Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd in preparation for its upcoming IPO on the ACE Market. The IPO will involve the issuance of 138.54 million new shares and the sale of 88.24 million existing shares, totaling 226.78 million shares. Of the public issue, 44.12 million shares, constituting five percent of the company's enlarged share capital, will be allocated to the Malaysian public.

Additionally, 22.06 million shares, or 2.5 percent, will be set aside for eligible directors, employees, and Bumiputera investors. The remaining 50.3 million shares, or 5.7 percent, will be reserved for private placement to selected investors. KEB's managing director, Datuk Lim Kim Chong, emphasized that the IPO represents a crucial milestone in fortifying the company's platform for future expansion.

The funds raised from the public issue will be utilized for landbank acquisition, financing project development, repaying bank borrowings, and covering listing expenses. M&A Equity Holdings Bhd's Datuk Bill Tan expressed confidence in KEB's ability to capitalize on the listing for its next growth phase. KEB has extensive experience in various property development sectors, including residential, industrial, commercial, and mixed-use projects.

Its in-house construction arm, KEB Utama Sdn Bhd, holds CIDB Grade G7 registration, enabling the group to maintain greater control over project execution, quality, and delivery timelines. KEB has successfully completed 14 property development projects thus far, with its development pipeline encompassing two ongoing projects valued at RM773.29 million and four future projects worth an estimated RM940.74 million.