From left: WTEC Group Bhd non-independent non-executive director Eu Tiong Nam, WTEC group executive director Andy Tiow See Yen, WTEC group managing director Tan Kok Kheng, WTEC independent non-executive chairperson Teresa Tan Siew Kuan, Alliance Islamic Bank Bhd chief executive officer Rizal IL-Ehzan Fadil Azim, Alliance Bank group chief corporate & institutional banking officer Teoh Chu Lin, Alliance Islamic Bank Bhd head / senior vice president, corporate finance, Islamic capital markets Tee Kok Wah.
KUALA LUMPUR: ACE Market-bound WTEC Group Bhd
expects to increase its revenue by at least 10 per cent in the financial year ended Dec 31, 2026 (FY2026) compared to FY2024 by enhancing production capabilities using funds raised from its initial public offering (IPO).
Group managing director Tan Kok Kheng said this would, however, depend on market conditions and the speed of the process of acquiring its new factory, which will be located either in Kajang or Semenyih, Selangor.
The company, which makes foam products and non-woven fabric parts for industries such as automotive, posted an after-tax profit of RM8.20 million on revenue of RM52.02 million in FY2024.
"We are still monitoring (the market situation) from time to time and expect the FY2026 results to be at least in line with FY2024 numbers even if we do not achieve the target 100 per cent given the current market uncertainty,” he told a press conference in conjunction with the launch of the company's prospectus here today.
The manufacture of foam products accounted for 65.7 per cent of the group's total revenue last year. The manufacture of non-foam products contributed 15.9 per cent while the remaining 18.4 per cent came from the trading of polyurethane foam and other products.
The company aims to raise RM22.54 million from the IPO, of which RM9.42 million (41.8 per cent) will be used to purchase and renovate a new factory and RM3 million (13.3 per cent) will be for the purchase of new machinery and equipment.
The rest of the proceeds will be for working capital (RM5.12 million), sales and marketing expenses (RM1 million), and estimated listing expenses (RM4 million).
Tan said that after acquiring the "ready-built” manufacturing facility, WTEC would consolidate operations from multiple facilities into the new factory to improve efficiency, reduce costs, and provide additional space for new machinery. Operations are expected to start in the second quarter of 2026.
He said the company continues to see opportunities in the automotive, electrical and electronics, medical and personal protective equipment sectors.
On the United States (US) tariffs, Tan expressed confidence that WTEC would not face a significant impact as it does not depend highly on the US market.
"The US only accounts for 25 per cent of the world’s gross domestic product. So we do not worry too much about the tariffs,” he said.
He noted that Malaysia remains its main target market, accounting for 76 per cent of the group’s revenue in FY2024.
As for the export markets, he said Vietnam contributed 12.38 per cent, Thailand 3.57 per cent, Australia 2.96 per cent, and others 5.11 per cent.
WTEC is scheduled to be listed on Bursa Malaysia on April 29, 2025.
The application period for its IPO opens today and will close on April 15, 2025.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise. - Bernama
