PETALING JAYA: Automotive cover and seat manufacturer Feytech Holdings Bhd aims to raise RM114.66 million from its initial public offering (IPO) en route to a listing on the Main Market of Bursa Malaysia on May 21, 2024.
In a statement following the launch of its prospectus today, the group said the proceeds raised from the IPO would cater for the next phase of its business expansion.
Executive director and chief executive officer Connie Go said that as part of the group’s expansion, it would acquire land in Klang Valley (10.1 per cent or RM11.60 million of the proceeds) and construct a new corporate office (18.4 per cent or RM21.13 million) with a manufacturing plant and a warehouse with a total estimated built-up area of approximately 85,000 square feet (sq ft).
“Once completed, we aim to relocate our Petaling Jaya’s operations to this new facility.
“In addition, 16.4 per cent of the proceeds will be used to construct a new manufacturing plant, warehouse, annexe office building and staff hostel on a part of a vacant industrial land in Kulim, Negeri Kedah with a total estimated built-up area of 84,000 sq ft,” she said during the launch.
She said RM3 million (2.6 per cent) would be used to purchase new machinery, including 75 sewing machines, an automated leather cutting machine and a patterning machine, while RM52.17 million (45.5 per cent) would be utilised to purchase materials and supplies and general working capital.
The company said the IPO exercise would involve the issuance of 143.32 million new ordinary shares, representing 17 per cent of the enlarged share capital, at an IPO price of 80 sen per share, including an offer for sale of 109.62 million existing shares, representing 13 per cent of its enlarged share capital, by way of private placement for bumiputera investors.
“Based on the group’s enlarged share capital of 843.20 million shares and the aforesaid IPO price, the market capitalisation (upon listing) will be approximately RM674.56 million,” it said.
According to the prospectus, out of the 143.32 million new shares, 42.16 million will be made available to the Malaysian public via balloting.
The other 25.30 million shares are allocated for eligible directors and employees as well as persons who contributed to the success of the group (pink form allocations), while the remaining 75.87 million will be made available by way of private placement to selected investors.
It said TA Securities Holdings Bhd would serve as the principal adviser, managing underwriter, joint underwriter and joint placement agent for the IPO exercise, while AmInvestment Bank Bhd would serve as the joint underwriter and joint placement agent.
Application for the IPO starts today and will be closed at 5 pm on May 8. – Bernama