KUALA LUMPUR: Second board-bound Favelle Favco Bhd, a leading customised crane manufacturer for the offshore oil and gas, construction and marine industries, plans to focus on expanding into new markets.
Having successfully penetrated the US, Mexico, Azerbaijan and the countries around the North Sea over the past five years, the company was now setting its sights on expanding into new markets in Russia, Brazil and the Middle East, said chief executive officer and deputy managing director Mac Chung Hui.
“Not only do we plan to increase our presence there, but also to intensify sales and marketing efforts in niche markets, such as manufacturing highly specialised cranes for deepwater drilling and the construction of tall buildings,” he said after the launch of the company's prospectus yesterday.
Mac said the company planned to focus on Russia.
“Since they do not have their own crane, what they need is foreign cranes. This is good for us and we can tap on that,” he said.
Favelle Favco's initial public offering (IPO) entails a public issue of about 48 million new shares and offer for sale of 22 million shares of 50 sen each at 55 sen per share.
Of the new shares, about 29.8 million are offered to shareholders of Muhibbah Engineering (M) Bhd, which is Favelle Favco's parent company, on a one-for-five basis, while 13 million shares are offered to directors and staff of the company.
About 5.2 million new and 19.8 million offer for sale shares will be placed out to approved bumiputra investors, while the remaining offer for sale shares of 2.2 million will be offered to identified investors.
Favelle Favco hopes to raise about RM26.4mil from the IPO, of which RM10mil will be used to repay bank borrowings and RM8.5mil to repay the amount owing to Muhibbah.
Another RM3mil will be allocated for research and development, RM2.9mil for working capital and the remaining RM2mil for listing expenses.
The listing of Favelle Favco is fixed tentatively for Aug 15.
Favelle Favco is ranked among the top 10 global suppliers for tower cranes, port/wharf cranes and offshore cranes. – Bernama
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