PETALING JAYA: Mega Fortris Bhd is seeking shareholders’ approval to revise the use of proceeds from its initial public offering (IPO), after reworking its expansion strategy for its playing card manufacturing business.
In a filing to Bursa Malaysia, the security seals maker said it plans to vary the utilisation of RM45mil out of the RM99.07mil raised from its IPO in November 2024. As at Dec 31, 2025, about RM49.13mil of the proceeds had been utilised, with RM49.94mil remaining unspent.
The RM45mil was originally earmarked for capital expenditure to set up a second playing card manufacturing line in Macao through a subcontracting arrangement. However, the group has since decided not to proceed with the Macao-based manufacturing line and will instead consolidate all card production activities in Malaysia.
“The group will not set up a second manufacturing line in Macao and will instead concentrate all its card manufacturing operations in Malaysia,” it said. Under the revised plan, the card manufacturing line will be installed at its premises in Shah Alam by the end of the third quarter of 2026, with operations expected to begin in the fourth quarter.
Mega Fortris said the consolidation will allow it to increase annual production capacity from about 19 million decks to approximately 44 million decks, following customisation and reconfiguration works on its manufacturing line. The group also plans to establish a warehouse and assembly centre in Macao to provide “a total solution in supplying and handling of playing cards in sealed security boxes” for customers there. This Macao centre is expected to commence operations in the second quarter of 2027.
Under the proposed variation, the RM45mil will be redirected towards capital expenditure for the expanded Malaysian production line, renovation works, the setting up of the Macao centre, and working capital for the card printing business.
The group cited difficulties in sourcing suitable industrial premises in Macao and rising rental costs as key factors behind the change in strategy. It added that concentrating manufacturing in Malaysia is expected to result in cost savings of about RM11.2mil.
The proposed variation represents about 45.4% of total IPO proceeds and is therefore deemed a material change, requiring shareholder approval at an extraordinary general meeting. The company said the proposal will not have a material impact on its financial position for the financial year ending June 30, 2026, but is expected to support earnings over the longer term.
