KUALA LUMPUR: HPMT Holdings Bhd, which manufactures and distributes cutting tools for metalworks, will raise RM42.3mil from its proposed listing on the Main Market of Bursa Malaysia.
Of the RM42.30mil, it planned to use RM34mil to purhase new machinery while RM2.90mil would be working capital.
HPMT launched its prospectus on Friday for the listing exercise which will involve 116.60 million shares at an offer price of 56 sen each. Upon listing, its capitalisation would be RM184mil.
Of the 116.6 million shares, it said 16.4 million shares would be offered to the public; 8.3 million to eligible directors and employees; 59 million to institutional and selected investors and 32.9 million to approved Bumiputera investors.
Hong Leong Investment Bank Bhd is the principal adviser, underwriter and placement agent for this listing exercise.
HPMT has an export market share of about 23.6% based on the export revenue of RM68.3mil in FYE2018, making HPMT among the prominent cutting tool manufacturers in Malaysia.
HPMT managing director Khoo Seng Giap said the company would use part of the IPO proceeds to buy machinery and raise the production cutting tools.
“The purchase of the new machinery will increase our production capacity by over 40% to 212,600 pieces (of cutting tools) monthly as at Dec 31, 2021 (from 148,200 pieces as at end-2018).