From left: EPB Group independent non-executive director Stephen Chua Chee Keong, independent non-executive director Ooi Hun Pin, WYNCORP Advisory Sdn Bhd Moh Jiun Haur, EPB Group deputy managing director Liew Meng Hooi, independent non-executive chairman Noor Azman Nordin, managing director Yeoh Chee Min, executive director Ooi Kim Kew, Malacca Securities Sdn Bhd managing director Lim Chia Wei and EPB Group independent non-executive director Khor Chai Tian
KUALA LUMPUR: EPB Group Bhd aims to raise RM40.08 million from its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia on Aug 23, 2024.
Managing director Yeoh Chee Min said that of the total proceeds, RM24.6 million would be utilised for the factory expansion, which includes the acquisition of land from Penang Development Corporation, construction of a new factory and the purchase of machinery.
"Our current facility is operating over capacity and we missed a lot of opportunities as we do not have enough space to showcase our products. We are very constrained in terms of space, and thus, we need this,” he told a press conference in conjunction with the prospectus launch today.
Yeoh explained that the new facility will be 70,000 square feet in size, allowing the company more space for future expansion as the land area is 2.83 hectares.
The company also planned to ride on the Industrial Revolution 4.0 wave and increase the integration of robotic technology with its food processing and packaging machinery solution.
He said EPB Group has identified an opportunity in the industry for the use of more robotic technology, given the stringent hygiene requirements for the handling of food and pressing challenges faced by food manufacturers in hiring factory workers.
"The use of more robotic technology will help to minimise human interference and address the worker supply gap. Robotic technology is a solution for expensive labour and hygiene issues,” he noted.
Asked about its geographical presence, Yeoh said the company is also exporting abroad, with the Philippines and Indonesia as its biggest markets.
"The population size in these two countries is huge, and there is a lot of demand for processed food such as sausage and nuggets,” he said.
EPB Group is primarily engaged in designing, customising, fabricating, integrating and automating production lines for food manufacturing and processing companies.
At the IPO price of 56 sen per share, EPB would achieve a market capitalisation of RM208.32 million ahead of its debut.
The IPO entails a public issue of 71.57 million new shares, representing 19.24 per cent of its enlarged share capital, and an offer for sale of 40 million ordinary shares or 10.75 per cent of the enlarged issued share capital upon listing, EPB said in a statement in conjunction with the prospectus launch.
It said that out of the public issue shares, 19.57 million shares would be made available for application by the Malaysian public via balloting, of which 50 per cent or 9.78 million shares will be made available to bumiputera public investors.
Additionally, 21.19 million shares have been reserved for eligible directors, key senior management, employees, and business associates who have contributed to the success of the company via pink form allocations.
The remaining 30.80 million shares will be made available for application by bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) via private placement.
Out of the 40 million shares under the offer for sale, 15.69 million shares will be made available to bumiputera investors approved by MITI, while 24.30 million shares have been reserved for selected investors.
The company said the application for the IPO will be available starting today and will be closed on July 31, 2024, at 5 pm. - Bernama
