KUALA LUMPUR: Glove-dipping lines manufacturer HLT Global (HLTG) Bhd aims to raise gross proceeds of RM17.8mil from its initial public offering (IPO).
Executive director Chan Yoke Chun said 51% of the proceeds would be predominantly used for capital expenditure, including for the acquisition of land and construction of a factory in southern Klang Valley.
"The proposed land acquisition and factory construction are pursuant to our plan to set up a new factory.This will enable us to increase production capacity to capture more business opportunities in the future," she said at the launch of the company's prospectus in conjunction with its proposed listing on the Ace Market of Bursa Malaysia, here today.
Chan said the remaining proceeds would be utilised for research and development (8.42%), working capital (27.59%) and estimated listing expenses (13.47%).
The IPO exercise involves 39.6 million ordinary shares, 13.2 million shares for the Malaysian public, 26.4 million shares for Bumiputera investors.
In addition, two million shares will be made eligible for the directors and employees of HLTG and its subsidiaries, while 32.31 million shares will be offered to selected investors.
Under the IPO, the company is making a public issue of 264 million new shares at an issue price of 45 sen each, which in turn will have a market capitalisation of RM118.8mil.
Application for the public issue will be closed on Dec 28, while the company is due to list on Jan 10, 2017.
Later at a press conference, Chan said the company planned to expand into Vietnam next year in the quest to tap into the potential market.
"From our research, Vietnam is a good place to invest because we can see a lot of people (businesses) going there, including (investors) from China and Taiwan," she said.
Besides Malaysia, the company has presence in Thailand, Indonesia, India and Saudi Arabia.
On the weakening of ringgit, Chan said it has no significant effect on the company's revenue as 70% of its raw materials was purchased locally, while the remaining percentage was imported from countries like China, Denmark and Singapore.
"In fact, when we export our goods we would be turning a profit as we utilise the US dollar in our operations," she said, adding the company held 26.6% market share in industry revenue - Bernama.
Executive director Chan Yoke Chun said 51% of the proceeds would be predominantly used for capital expenditure, including for the acquisition of land and construction of a factory in southern Klang Valley.
"The proposed land acquisition and factory construction are pursuant to our plan to set up a new factory.This will enable us to increase production capacity to capture more business opportunities in the future," she said at the launch of the company's prospectus in conjunction with its proposed listing on the Ace Market of Bursa Malaysia, here today.
Chan said the remaining proceeds would be utilised for research and development (8.42%), working capital (27.59%) and estimated listing expenses (13.47%).
The IPO exercise involves 39.6 million ordinary shares, 13.2 million shares for the Malaysian public, 26.4 million shares for Bumiputera investors.
In addition, two million shares will be made eligible for the directors and employees of HLTG and its subsidiaries, while 32.31 million shares will be offered to selected investors.
Under the IPO, the company is making a public issue of 264 million new shares at an issue price of 45 sen each, which in turn will have a market capitalisation of RM118.8mil.
Application for the public issue will be closed on Dec 28, while the company is due to list on Jan 10, 2017.
Later at a press conference, Chan said the company planned to expand into Vietnam next year in the quest to tap into the potential market.
"From our research, Vietnam is a good place to invest because we can see a lot of people (businesses) going there, including (investors) from China and Taiwan," she said.
Besides Malaysia, the company has presence in Thailand, Indonesia, India and Saudi Arabia.
HLTG's order book currently stood at RM69mil which will keep the company busy until end of 2017.
On the weakening of ringgit, Chan said it has no significant effect on the company's revenue as 70% of its raw materials was purchased locally, while the remaining percentage was imported from countries like China, Denmark and Singapore.
"In fact, when we export our goods we would be turning a profit as we utilise the US dollar in our operations," she said, adding the company held 26.6% market share in industry revenue - Bernama.
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