Plytec inks underwriting agreement

PETALING JAYA: ACE market-bound Plytec Holding Bhd has entered into an underwriting agreement with three individual selling shareholders and two investment banks, namely KAF Investment Bank Bhd and Kenanga Investment Bank Bhd to underwrite 51.52 million shares.

In a press statement yesterday, the construction engineering solutions and services group said that the shares to be underwritten consists of 30.30 million issue shares that will be available for application by the Malaysian public; and another 21.21 million offer shares, all of which are currently held by Plytec group managing director and chief executive officer Yang Kian Lock, Low Teck Heng and Louis Tay Chee Siong.

Plytec said the offer shares will be available for application by eligible directors, employees and persons who have contributed to the success of the group and its subsidiaries, in conjunction with its initial public offering (IPO).

Plytec’s IPO entails a public issue of 106 million new shares and an offer for sale of 51.5 million existing shares. Of the issued shares, 30.30 million is the aforementioned ones to be underwritten and made available for application by the Malaysian public, while 75.76 million is to undergo private placement to Bumiputra investors approved by the Ministry of Investment, Trade and Industry.

Concurrently, aside from the 21.21 million offer shares to be underwritten and made available for application by Plytec’s eligible directors, employees and persons who are deemed to have made meaningful contributions to the group and its subsidiaries; another 30.30 million is to be offered by private placement to selected investors, making up the 51.5 million existing ordinary shares offered for sale.

Yang considered the underwriting signing a significant milestone for the company, which serves to propel the group closer to becoming a publicly traded company.

“Our goal is to strengthen our position as a construction method engineering and digital design engineering solutions provider with a focus on the adoption of digital smart technology. This listing will enable us to scale to greater heights,” he said.

Plytec said the proceeds from the IPO will be used primarily for capital expenditure, repayment of borrowings, as well as construction of factories and centralised labour quarters on the group’s Olak Lempit land.

On top of that, the raised funds would also be utilised in the purchase of software systems and hardware, as working capital as well as covering for listing expenses.

Originally known as Sudut Swasta Group during its commencement in 1999, Plytec has expanded beyond its initial focus on distributing building materials, and is at present principally involved in the provision of construction engineering solutions and services.

These services include construction method engineering solutions, digital design and engineering solutions as well as prefabricated construction solutions which are aimed at increasing the efficiency and safety in construction activities via the adoption of industrialisation practices.

The group is also involved in the trading and distribution of core and general building materials.

Plytec is expected to be listed on the ACE market of Bursa Malaysia in the fourth quarter of the year.

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Plytec , ACE market , Bursa Malaysia


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