KHPT group managing director Datin Eloise See.
KUALA LUMPUR: Automotive parts and components manufacturer KHPT Holdings Bhd aims to raise RM21.73mil from its initial public offering (IPO) as the group targets to list on the ACE Market of Bursa Malaysia on Oct 8, 2024.
The IPO involved the issuance of 108.64 million new shares at a price of 20 sen per share. Upon listing, KHPT is expected to have a market capitalisation of RM80.48mil.
Under the public issuance, 20.12 million new shares are allocated to the public, 10.06 million shares for eligible directors and employees of the group, while the remaining 78.47 million shares will be made available to approved selected investors through a private placement.
KHPT group managing director Datin Eloise See said most of the proceeds (75.32%) from the IPO would be utilised for capital expenditure.
“A total of 50.83% of the proceeds, amounting to RM11.05mil, will be used to purchase a press machine. Meanwhile, 20.71% or RM4.5mil, will be allocated for the purchase of automation equipment, while 3.78% will be used for renovating our factory to accommodate the press machine.
A further 3.24%, amounting to RM0.71mil, will be allocated for working capital and 21.44% will be to cover listing expenses,” she told a press conference following KHPT’s prospectus launch here, yesterday.
According to See, the company has a bright outlook leveraging on the rise in the total industry volume in the Malaysian market as well as upcoming new launches of car models.
“Additionally, there will be more demand and projects related to the localisation and social commoditisation of parts, especially with the government’s push for tax incentives. This presents an opportunity for local vendors like us to expand our capacity, so we should not wait,” she said.
She said KHPT is open to work with international original equipment manufacturers (OEMs) and brands.
As of today, KHPT mainly manufactures and sells parts and components for Perodua and Proton.
“We will continue to focus locally. Of course, we will always be open to any OEMs if they are keen to work together with us,” she added.
Asked if the expected RON95 petrol rationalisation will impact the business, See said KHPT will not have any issues considering parts and components are not exclusive for internal combustion engines vehicles.
“Generally, I believe our local manufacturers have their own strategies in tackling risk regarding the rationalisation. However, I think the parts that we supply are not only for petrol cars, but can be brought forward to electric vehicles (EVs) or any hybrid models,” she said.
Additionally, the lisitng will see an offer for sale of 38.23 million shares by way of private placement by See as well as Automev Global Sdn Bhd technical director Tiu Kuang Hong. Automev Global is a wholly-owned subsidiary of KHPT.
Post-IPO, See will have a 55.62%-stake in KHPT – making her the controlling shareholder of the company, while Tiu will have 4.23%.
