KOTA KINABALU: Sabah beverage manufacturer Life Water Bhd plans to use the proceeds of its upcoming listing on the Main Market of Bursa Malaysia to expand into Sarawak and Brunei.
Managing director Liaw Hen Kong said the company is appointing distributors in Sarawak and Brunei to increase market penetration by the end of 2025.
“Additionally, we plan to expand our beverage portfolio by introducing a new range of flavoured drinks under the Mandak brand, for which we have obtained trademark registration.
“This new product will be brought to market using our existing carbonated drinks production line at the Sandakan Sibuga plant one, catering to evolving consumer preferences,” he told a press conference after the launch of Life Water’s prospectus here yesterday.
The company aimed to raise RM63.42mil by issuing 97.56 million new ordinary shares at an initial public offering (IPO) price of 65 sen each.
According to its prospectus, based on the company’s enlarged share capital of 473.18 million shares at the IPO price, the company’s market capitalisation will be RM307.57mil. The company said about 84% of the total proceeds will be allocated for business expansion purposes.
The largest portion, around 30%, will be used to set up an additional drinking water manufacturing line at the Sandakan Sibuga plant one, 18.9% for the purchase of a new drinking water line at Sandakan Sibuga plant two, and 19% to establish a second distribution centre in Sandakan.
About 15% of the proceeds will be invested in expanding the existing plastic packaging facilities in Kota Kinabalu, 6.6% will be allocated for working capital and 9.5% to cover listing expenses.
Having an 11% market share in Malaysia’s bottled water market, Liaw said the company is set to expand further.
“With the new Keningau Plant becoming operational by December 2024, the capacity will increase to 448 million litres, including 37 million litres of carbonated drinks.
“We have done extensive marketing and branding for the existing Sabah markets, which will help us capture more consumer preference for our products due to our quality and affordability,” Liaw added
Applications will close on Oct 30 at 5pm. The company is scheduled to be listed on Nov 13.
MIDF Amanah Investment Bank Bhd is the principal adviser, underwriter, and placement agent for the listing exercise. — Bernama
