Eversafe Rubber to raise RM17m from IPO

KUALA LUMPUR: Eversafe Rubber Bhd plans to raise RM17.28mil as it seeks to listing on the ACE Market of Bursa Malaysia Securities.

The rubber products maker said in its prospectus on Friday it would be selling 48 million news shares at 36 sen each.

This would comprise of 12.50 million new shares to public; 11.50 million shares to the directors while 24 million shares would be placed out to institutional and selected investors.

The shareholders of Eversafe Rubber would also offer for sale up to 30 million exisiting shares, of which six million units would be placed out to institutional  and selected investors and up to 24 million shares to be approved Bumiputera investors.

The close date for application is April 10 while the tentative date for its listing is April 21.

Eversafe Rubber's core businesses include manufacturing and ditribution of tyre retreading materials.

It posted earnings of RM566,143 in the fourth quarter ended Dec 31, 2016 on the back of a revenue of RM19.67mil.

In the financial year ended Dec 31, 2016, it posted earnings of RM8.01mil, an increase of 38% from the RM5.80mil in FY15. Its revenue was slightly lower at RM74.74mil in FY16 compared with RM74.78mil.