Company Background

The Company was incorporated in Malaysia under the Act on 3 June 2022 as a private limited company under the name of KJTS Group Sdn Bhd. Subsequently, on 3 November 2022, the company was converted into a public limited company and assumed its present name, KJTS Group Berhad. The Company was incorporated to facilitate the Listing.

As at the LPD, the group structure is as follows:

The Company is principally an investment holding company. Through its subsidiaries, the company is principally involved in providing building support services comprising cooling energy, cleaning and FM services.

Use of proceeds

1. Business expansion: - 76.3% (within 12 to 36 months)
   1. Expansion of Cooling Energy Segment - 68.66% (within 36 months)
   2. Expansion of offices in Malaysia, Thailand and Singapore - 7.64% (within 12 months)
2. Working capital - 13.79% (within 12 months)
3. Defraying the listing expenses - 9.91% (within 1 month)

Business expansion: - 76.3% (within 12 to 36 months)

(a) Expansion of Cooling Energy Segment - 68.66% (within 36 months)

The company intends to expand its Cooling Energy Segment business activities in Malaysia, comprising both cooling energy management services and EPCC of cooling energy systems.

The company has earmarked RM40.42 million or approximately 68.66% of the gross proceeds from its IPO for the expansion of the Cooling Energy Segment in Malaysia (i.e. to finance the EPCC of cooling energy systems as part of the cooling energy management services and to expand the EPCC of cooling energy systems business on a stand-alone basis), details of which are as follows:

(b) Expansion of offices in Malaysia, Thailand and Singapore - 7.64% (within 12 months)

The intends to use RM4.50 million or approximately 7.64% to expand or renovate the offices in Malaysia, Thailand and Singapore as follows:

Working capital - 13.79% (within 12 months)

The company has earmarked RM8.12 million or approximately 13.79% of the proceeds to fund the working capital requirements of the Group, which is expected to increase primarily as a result of the expansion plan of the Cooling Energy Segment. The breakdown of the expected utilisation of proceeds for the working capital is as follows:

Business model

The business model is depicted in the following diagram:

The company is principally a provider of building support services focusing on providing cooling energy, cleaning and FM services. Within the Cooling Energy Segment, the company provides cooling energy management services, and EPCC including new, retrofitting and/or upgrading of cooling energy systems. The cleaning services are focused on ensuring the cleanliness, tidiness and hygiene of buildings and facilities. The FM services are focused on the repair and maintenance of M&E machinery and equipment, process utilities including plumbing, drainage and sewerage, and F&B and retail outlet equipment. In FYE 2021, the company also carried out building construction, which was a one-off project.

The three business segments are synergistic as they are all supporting services for the safe operation and functioning of buildings and facilities. The company is also able to cross-sell these three services to the same customer for their buildings and facilities

Click here to continue the IPO - KJTS Group Berhad (Part 2)

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