KUALA LUMPUR: Geotechnical instrumentation service provider Glostrext Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia.
The IPO would involve a public issue of 105.83 million new issue shares, representing 26 per cent of the enlarged share capital of Glostrext, and an offer for sale of 16.28 million existing shares via private placement to selected investors, it said in a statement today.
Glostrext said 20.35 million shares of the 105.83 million new issue shares would be made available to the Malaysian public.
"A further 10.18 million shares will be offered to its eligible directors and employees as well as persons who have contributed to the company's success under the pink form allocations.
"The remaining 75.30 million issue shares are reserved for private placement to selected investors," it said.
Under the agreement, it said M&A Securities would underwrite a total of 30.53 million issue shares made available to the Malaysian public and under the pink form allocations.
Managing director Lee Sieng Kai said the IPO exercise would enable the company to tap the equity capital market to raise funds to expand its structural and ground instrumentation and monitoring business into Singapore, with the focus on promoting the off-site structural and ground instrumentation and monitoring services using its Glostrext WiNA platform.
"Such an offering is in line with the current trend as many businesses and companies are seeking automation to, among others, increase operational efficiency and reduce reliance on manpower,” he added.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO. - Bernama