Feytech signs underwriting agreement for listing on Main Market

From left: TA Securities head of corporate finance Dominic Seah, executive director of operations Tah Heong Beng, Feytech executive director Tan Sun Sun, executive director and CEO Connie Go, AmInvestment Bank CEO Tracy Chen Wee Keng and deputy CEO Christopher Ng Kok Wai.

KUALA LUMPUR: Feytech Holdings Bhd, en route to a listing on the Main Market of Bursa Malaysia, has signed an underwriting agreement with TA Securities Holdings Bhd and AmInvestment Bank Bhd for the company’s initial public offering (IPO).

In a statement, Feytech, which is principally an automotive cover and seat manufacturer, said the IPO entailed a public issue of 143.32 million new ordinary shares and an offer for sale of 109.62 existing shares.

Of the 143.32 million public issue shares, 42.16 million shares will be made available to the public via balloting, 25.30 million shares will be allocated to the eligible directors, employees and persons who have contributed to the success of the group, while the remaining 75.87 million shares will be allocated by way of private placement to selected investors.

Meanwhile, out of the 109.62 million shares offered for sale, 105.40 million will be allocated by way of private placement for bumiputra investors approved by the Investment, Trade and Industry Ministry, while 4.22 million shares will be allocated by way of private placement to selected investors.

The joint underwriters will underwrite a total of 67.46 million public issue shares, being the portion of new Feytech shares made available to the public via balloting and eligible directors and employees as well as persons who have contributed to the success of the group.

Feytech said proceeds from the IPO would be utilised to part-finance the acquisition of land and the construction of a new corporate office with a manufacturing plant and warehouse in the Klang Valley spanning a built-up area of 85,000 sq ft.

Upon the completion of the new corporate office with manufacturing plant and warehouse, the group would relocate all its existing operations in Petaling Jaya to the new corporate premises.

Additionally, part of the IPO proceeds will be used to construct a new manufacturing plant, warehouse, annexe office building and hostel on industrial land in Kulim, Kedah, with a total estimated built-up area of 84,000 sq ft (Kulim plant two).

The total manufacturing space and storage space for the group’s manufacturing of automotive seats is expected to increase by about 55,000 sq ft upon the completion of Kulim plant two. — Bernama