PETALING JAYA: Mechanical and electrical (M&E) engineering services provider, West River Bhd
, has signed an underwriting agreement with M & A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
In a statement, West River said its listing exercise will involve a public issue of 71.54 million new shares, representing 20% of its enlarged share capital of 357.70 million shares, alongside an offer for sale of 35.77 million existing shares, representing 10% of the enlarged share capital.
For the Malaysian public, 17.89 million shares representing 5% of the company's enlarged share capital will be issued, of which 2.5% will be made available to public investors and 2.5% to Bumiputera public investors.
Meanwhile, for eligible directors, employees and persons who have contributed to the success of West River, a total of 8.94 million shares will be issued, representing 2.5% of the company's enlarged share capital.
A total of 4.71 million shares, representing 12.5% of the company's enlarged share capital, will be reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Commenting on the underwriting agreement, West River managing director Lim Yong Lai said it was a significant step forward in the company’s journey to becoming a listed entity.
“The IPO proceeds will be instrumental in accelerating our expansion plans and enhancing operational efficiency to meet the growing demand in the M&E engineering industry.”
He said part of the funds raised from the IPO will be strategically allocated towards the acquisition of land and construction of a new manufacturing factory cum warehouse to enhance production efficiency and inventory management.
Lim said the company will also increase production output of electrical panels and distribution boards to support a growing order book.
He added that the proceeds from the IPO will also be utilised for repayment of bank borrowings, strengthening working capital and expanding the business development team to capture new opportunities.
M&A Securities will serve as the principal adviser, sponsor, underwriter, and placement agent for the IPO, which is targeted for listing in May 2025.
