KEB Bhd taps M&A Securities to underwrite ACE Market IPO
Property developer KEB Bhd has signed an underwriting agreement with M&A Securities for its planned ACE Market debut. The IPO will involve shares offered to the Malaysian public and pink form allocations, with proceeds earmarked for land acquisition, working capital, and loan repayment.
KUALA LUMPUR (Sept 25): Property developer KEB Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its planned debut on the ACE Market.
Under the agreement, M&A Securities will underwrite the shares offered to the Malaysian public and to eligible persons under ‘pink form’ allocation, the company said in a statement on Friday. The timeline for the initial public offering (IPO) was not disclosed.
"The signing of the underwriting agreement marks another important milestone in KEB’s journey towards our proposed listing on the ACE Market," said managing director Datuk Lim Kim Chong.
Based in Cheras, Selangor, KEB develops homes, industrial and commercial properties, and mixed-use projects mainly in the central region of Malaysia focusing on affordable to medium-priced products.
The company is currently developing two residential projects worth RM773 million in combined gross development value. KEB also has four future projects valued at RM941 million and nearly 30 acres of land bank held for development.
Proceeds from the IPO have been earmarked for potential land acquisition, working capital for current projects, repayment of bank borrowings, and defraying listing expenses.
"This IPO represents an important step in strengthening our platform for future growth, as it will support our plans to expand our development pipeline, acquire additional land bank and enhance our financial flexibility as we continue delivering value-accretive property developments," Lim said.
Lim and his son Vinson, who is also an executive director at KEB, are cashing out part of their existing stake in the company in an offer for sale. Post-IPO, they will still control more than two-thirds of the company’s shares.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO while Eco Asia Capital Advisory Sdn Bhd serves as the financial adviser.
