1 week Ago By Asila Jalil
KUALA LUMPUR: WTEC Group Bhd is set to raise RM22.5 million from its initial public offering (IPO) ahead of its planned listing on the ACE Market of Bursa Malaysia.The company's IPO entails the issuance of 90.
2 million new ordinary shares as well as an offer for sale of 43.2 million existing shares. Upon its listing, WTEC Group will have a market capitalisation of RM120 million, based on an IPO price of 25 sen per share and an enlarged share capital of 480 million shares.
"The launch of our prospectus today marks a defining moment for WTEC Group as we make progress towards listing on the ACE Market," said group managing director Tan Kok Kheng."This momentous milestone reflects not just our growth over the past two decades, but also our ambition to scale to new heights in the manufacturing and trading of foam and non-foam product." WTEC plans to allocate RM9.
43 million of the IPO proceeds to purchase and renovate a new factory and an additional RM3 million will be used to acquire new machinery.Additionally, RM1 million will be used for sales and marketing, RM5.12 million is allocated for working capital and the remaining RM4 million is set aside for listing expenses.
"The IPO proceeds will be instrumental in enhancing our production capabilities and extending our market reach, allowing us to meet evolving industry demands with greater efficiency. "A core aspect of our growth strategy is the establishment of a new ready-built manufacturing facility, which will consolidate multiple facilities to improve efficiency, reduce costs, and provide additional space for new machinery and equipment, with expected commencement slated for the second quarter of 2026," added Tan. Following the prospectus launch, applications for the public issue are open from April 9 and will be closed on April 15, 2025.
The group is scheduled to be listed on the ACE Market on April 29.Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.© New Straits Times Press (M) Bhd.
