Furniture maker Wegmans to raise RM29m from IPO

KUALA LUMPUR: Furniture maker Wegmans Holdings Bhd plans to raise RM29mil from its offer of 100 million new shares under its proposed listing on the ACE Market of Bursa Malaysia.

According to its prospectus issued on Tuesday, it said the initial public offer of 100 million new shares comprised of 25 million shares for the public and 15 million shares for  eligible directors and employees.

Another 10 million shares would be placed out to  institutional and identified investors while and 50  million shares to be placed out to identified bumiputera investors.

Wegmans will also offer for sale 50 million existing shares for private placement to institutional and identified investors. This will enable it to raise RM14.50mil.

The company is scheduled to be listed on March 6.

Of the RM29mil to be raised from the sale of new shares, Wegmans said 38% or RM11mil would be used to build new factories, showroom and workers hostel. 

Another RM11mil would be to buy new machinery while RM3.5mil would be for working capital and the remaining RM3.5mil for listing expenses.