KHPT gets green light to list on ACE Market

KUALA LUMPUR: KHPT Holdings Bhd will undertake an initial public offering (IPO) exercise after getting the nod from Bursa Malaysia to list on the ACE Market.

In a statement, the local automotive manufacturer said the public issue entrails 108.64 million new shares and an offer for sale of 38.23 million shares.

Of the public issue shares, 78.47 million will be made available to selected investors via private placement, 20.12 million to the Malaysian public via balloting and 10.06 million to the eligible directors and employees of KHPT and its subsidiary.

The 38.23 million shares under the offer for sale will be made available to selected investors.

KHPT Group is principally involved in the manufacturing and sale of automotive parts to local automotive manufacturers and mainly to respective Tier-1 suppliers and manufacturers.

The group’s manufacturing operations are based in its factory with a built-up area exceeding 100,000 sq ft located in Tanjung Panglima Garang in Kuala Langat, Selangor.

According to gorup managing director Datin Eloise See, the proceeds from the IPO will facilitate its business expansion by financing capital expenditure and working capital requirements.

"Amongst others, the purchase of new press machines and automation equipment will enable us to increase our manufacturing capacity and efficiency.

"Furthermore, the addition of new manufacturing line arising therefrom will also provide further flexibility in our manufacturing of different automotive parts which we provide to our customers," she said.

KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.