From left: Andy Tiow See Yen, group executive director of WTEC Group; Tan Kok Kheng, group managing director; Rizal IL-Ehzan Fadil Azim, CEO of Alliance Islamic Bank; Teoh Chu Lin, group chief corporate and institutional banking officer of Alliance Bank Malaysia; and Tee Kok Wah, head/senior vice-president, corporate finance, Islamic capital markets of Alliance Islamic Bank
KUALA LUMPUR: WTEC Group Bhd has entered into an underwriting agreement with Alliance Islamic Bank Bhd for its upcoming intial public offering (IPO) on the ACE Market of Bursa Malaysia.
WTEC Group, through its subsidiaries (collectively known as the “Group”), manufactures and trades foam and non-foam products, serving a diverse range of industries including automotive, electrical and electronics, construction, medical and personal protective equipment, and others.
It is scheduled to be listed on the ACE Market by April 2025.
In a statement, WTEC said the IPO entails a public issuance of 90.2 million new ordinary shares, representing 18.8% of its enlarged issued share capital.
There is also an offer for sale of 43.2 million existing shares, or 9% of the enlarged share capital.
Out of the 90.2 million issue Shares, 24 million shares will be made available to the Malaysian public via balloting, 9.6 million Issue Shares to eligible directors, employees and persons who have contributed to the success of the group via pink form allocations, while the remaining 56.6 million shares will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).
In addition, out of the 43.2 million shares to be offered for sale through private placement, 39.8 million shares will be made available to selected investors and the remaining 3.4 million shares will be made available to Bumiputera investors approved by Miti.
Alliance Islamic Bank will underwrite the total of 33.6 million shares made available to the Malaysian public and via pink form allocations.
WTEC group managing director Tan Kok Kheng said Malaysia’s manufacturing sector is on a growth trajectory, supported by strategic policies and increasing industry demand.
"With the New Industrial Master Plan 2030 driving growth, and the automotive sector expected to reach 1.2 million units by 2030, driven by the growing demand for electric vehicles and an expanding aftermarket, opportunities are abundant.
"Meanwhile, the electrical and electronics industry is also gaining momentum, fuelled by the demand for intermediate products, further enhancing growth prospects,” he said.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.
