Kuala Lumpur, Jan 11: KJTS Group Berhad, a specialised building facilities provider, has officially launched its initial public offering (IPO) at RM 0.27 per share.
The company, known for its involvement in cooling energy, cleaning, and facilities management, has established a strong presence in regional markets across Malaysia, Singapore, and Thailand.
The IPO’s target price is set at RM 0.33, indicating a potential upside of 22.2 per cent from the initial offering price.
This optimistic outlook is backed by KJTS’s robust portfolio of unbilled EPCC projects in the cooling energy systems segment, amounting to RM32.5 million, and its consistent revenue from cleaning services contracts.
Founded in 1984, KJTS initially focused on air-cooled split unit installation and servicing.
The company has since expanded, landing its first EPCC contract for a district cooling system in Kuala Lumpur in 1997.
This project marked the beginning of a series of successes, including a significant contract in 2003 for a mixed-development project in Mid Valley City, Kuala Lumpur, and another in 2008 with a semiconductor manufacturer in Muar, Johor.
KJTS’s expansion continued with its foray into Singapore in 2019 through the acquisition of KJ FEM and into Thailand in 2021 with the incorporation of KJTN Engineering.
Today, KJTS is a diversified specialist in building support services, offering a range of solutions from cooling energy to facility management.
The company operates two primary revenue streams: recurrent revenue from maintenance and management services and lump-sum project-based revenue from EPCC activities.
Its cooling energy segment, focusing on centralised systems for large commercial and industrial buildings, has been a significant contributor to its total revenue, with increasing contributions from cleaning and facilities management services.
In the cleaning services sector, KJTS offers specialized services ranging from high-level cleaning of theme park rides to managing cleanrooms in manufacturing premises.
The company’s approach to facilities management covers a wide spectrum, including mechanical, electrical, and process utility maintenance.
Financially, KJTS has shown consistent growth with a strong core net profit in FY21 and FY22.
Looking forward, the company is projected to see a continued increase in its core net profit, driven by its expansion in the cooling energy segment and ongoing efforts to secure new contracts.
The company’s IPO is a strategic step in its expansion plans, with the proceeds aimed at growing its cooling energy segment and establishing offices in Malaysia, Thailand, and Singapore.
This move is expected to open up new market opportunities and foster business growth, solidifying KJTS’s position in the building support services industry.
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