KUALA LUMPUR: KJTS Group Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

According to its draft prospectus, the IPO involves the issuance of approximately 218.03 million new ordinary shares, representing 31.69% of KJTS’s enlarged number of issued shares.

The issuance is split between the retail offering of 49.40 million new ordinary shares which represents 7.18% of the enlarged issued shares and the institutional offering of 168.63 million new ordinary shares to institutional and selected investors which represents 24.51% of the enlarged issued shares.

HLIB, as the principal adviser, sponsor, sole underwriter, and sole bookrunner will underwrite the entire 49.40 million new ordinary shares under the retail offering.

KJTS managing director Lee Kok Choon and executive director Sheldon Wee jointly said the IPO marked a pivotal moment in KJTS’s history, paving the way for its next stage of strategic growth.

“Our journey with HLIB in this endeavour is instrumental in realising our expansion goals and strengthening our market position. The funds raised from the IPO will be primarily deployed to expand our cooling energy segment in Malaysia.

“Our cooling energy services enable us to take advantage of opportunities from growing awareness of Environmental, Social and Governance (ESG) principles as these cooling energy systems help our customers reduce carbon dioxide emissions through the reduction of electricity consumption.

“We also plan to use these funds to expand our offices in Malaysia, Thailand, and Singapore. This financial boost is key to our commitment to sustaining and expanding our services across these countries,” they said.