KUALA LUMPUR: WTEC Group Bhd’s initial public offering (IPO) has been oversubscribed by 1.61 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd on April 29, 2025.
The IPO involves issuing 90.2 million new shares at 25 sen each to raise RM22.5 million, representing 18.8 per cent of the enlarged share capital of 480 million shares.
In a statement today, the foam and non-foam products manufacturer said it received 2,055 applications for 62.69 million shares from the Malaysian public, compared to the 24 million shares made available for public subscription.
"The 9.6 million shares allocated to eligible directors, employees and persons who have contributed to the group’s success have been fully subscribed.
"Meanwhile, the private placement of 56.6 million shares and 3.4 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), along with 39.8 million shares to selected investors, have been fully taken up,” said WTEC.
The company is expected to have a market capitalisation of RM120 million upon listing.
Group managing director Tan Kok Kheng said a significant portion of the IPO proceeds will be allocated to acquiring a new manufacturing facility, including machinery and equipment.
"These initiatives are aimed at enhancing our existing manufacturing capabilities and improving our overall operational efficiency, allowing us to better serve our customers who span across a wide range of sectors and markets,” he said.
Notices of allotment will be posted to all successful applicants by April 24, 2025.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise. - Bernama
