From left: KAF Investment Bank corporate finance director Azmi Hariss Ibrahim, KHPT independent non-executive director Datuk Tang Ngat Ngoh, independent non-executive director Datuk Noor Azian Shaari, independent non-executive chairperson Datuk Noripah Kamso, group managing director Datin Eloise See, executive director and chief business development officer Hideki Nomura, independent non-executive director Chan Yan San and KAF Investment Bank CEO Rohaizad Ismail
KUALA LUMPUR: Automotive manufacturing parts supplier KHPT Holdings Bhd aims to raise RM21.73 million from its initial public offering (IPO) en route to an ACE Market listing on October 8.
The IPO involves the issuance of 108.64 million shares at an IPO price of 20 sen per share.
The market capitalisation of the company upon listing will be RM80.48 million.
The company’s shares have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia.
Applications for the IPO shares will close on September 25 at 5 pm.
KHPT group managing director Datin Eloise See said the IPO proceeds will mainly be deployed for the group’s business expansion, with 75.3 per cent allocated for capital expenditure.
"A total of 50.8 per cent of the proceeds, amounting to RM11 million, will be used to purchase a press machine. Then, 20.7 per cent, or RM4.5 million, will be allocated for the purchase of automation equipment, while another four per cent will be used for renovating our factory to accommodate the press machine.
"A further 3.2 per cent, amounting to RM0.7 million, will be allocated for working capital, and 21.4 per cent will cover listing expenses,” she said at a press conference following the launch of the company’s prospectus here today.
Speaking on the outlook of the total industry volume of vehicles in Malaysia, Lee said the market is generally positive, signalling more new cars to be launched next year.
"Additionally, there will be more demand and projects related to the localisation and social commoditisation of parts, especially with the government’s push for tax incentives.
"This presents an opportunity for local vendors like us to expand our capacity, so we should not wait,” she said.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO. - Bernama
