KUALA LUMPUR: Plytec Holding Bhd
(PLYTEC), en route for a listing on the ACE Market of Bursa Malaysia Securities Bhd, aims to raise RM37.1 million from its initial public offering (IPO).
In a statement today, the construction engineering solutions, services, trading and distribution of building materials company said that through the IPO, the group expects to have an enlarged issued share capital of RM212.12 million comprising 606 million shares priced at 35 sen per share.
In conjunction with the company's listing, 30.30 million new shares will be made available for application by the Malaysian public while the remaining 75.76 million new shares will be made available via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Group managing director Yang Kian Lock said with RM7.8 million (21.01 per cent) of the proceeds, the company plans to strengthen their position as a construction method engineering (CME) solutions provider by increasing capacity for temporary work equipment.
"We are looking forward to venturing upstream into building manufacturing facilities for temporary works equipment and consolidating our support facilities on the prime Olak Lempit land in Banting, Selangor, which occupies over 801,000 square feet," he said in his speech during the company's prospectus launch here today.
From the IPO proceeds, RM9 million (24.2 per cent) will be utilised for repayment of borrowings, RM8 million (21.6 per cent) for capital expenditure, and RM6.3 million (17 per cent) for working capital.
The remaining RM6 million (16.2 per cent) of the proceeds will be used for estimated listing expenses, and purchases of software systems and hardware.
In the financial year ended Dec 31, 2022 (FY2022), the group reported revenue RM158.10 million and gross profit of RM42.29 million from four business segments that are CME, trading and distribution of building materials, digital design and engineering (DDE) solutions and prefabricated construction solutions.
Meanwhile, chief operating officer Louis Tay Chee Siong said that the company's CME segment, which stood as the largest contributor, accounted for 67.38 per cent of total gross profit in FY2022 and will be expanded in the ASEAN region by the end of 2023.
"For CME, our plan this year is to expand in ASEAN and we have been doing exhibitions in Vietnam, Indonesia and next the Philippines, whereas we are expanding worldwide for DDE solutions.
"Currently we are doing the service to East Europe," he said.
Applications for the IPO will close on Oct 31, 2023.
The group is scheduled to be listed on the ACE Market of Bursa Securities on Nov 15, 2023.
KAF Investment Bank Bhd will be the principal adviser, sponsor, underwriter and placement agent for this IPO exercise and Kenanga Investment Bank Bhd will be the joint underwriter and joint placement agent. - Bernama:
