KUALA LUMPUR: Powertechnic Group Bhd
has inked an underwriting agreement with TA Securities Holdings Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Powertechnic Group, which provides crane and hoist systems, elevated platform systems and elevators, said in a statement that the IPO exercise entails a public issue of 63 million new ordinary shares.
This represents 20.30 per cent of the group’s enlarged issued share capital, as well as an offer for sale of 21 million existing shares, representing 6.77 per cent of the enlarged issued share capital.
"Out of the 63 million issue shares, 15.60 million issue shares will be made available to the Malaysian public; 10 million issue shares to eligible directors, employees, and other persons who have contributed to the success of the group; and the remaining 19.6 million issue shares will be made available by way of private placement to selected investors.
"The 17.8 million offer shares will be made available by way of private placement to selected investors," it said.
Pursuant to the underwriting agreement, TA Securities has agreed to underwrite a total of 15.6 million issue shares made available to the Malaysian public and pink form allocation.
The company also offers for sale 21 million existing shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
Powertechnic Group managing director Ivan Na Keh Chai said the IPO proceeds will allow the company to invest in automation for their fabrication processes and set up new product showrooms and sales offices with storage space in Penang and Sarawak.
"It will allow us to strengthen our brand presence in new target areas, including the northern region of Peninsular Malaysia, East Malaysia, Singapore and Indonesia, ensuring that we continue to deliver reliable lifting systems to our customers," he said.
TA Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO. - Bernama
