KUALA LUMPUR: HSS Holdings Bhd, the bakery products player, has signed an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) ahead of the company's proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.
The IPO comprises a public issue of 75.0 million new shares and an offer for sale of 52.5 million existing shares.
Of the issue shares, 25.0 million are allocated to the Malaysian public and 10.0 million to eligible persons. Another 10.0 million shares will be placed privately with Bumiputera investors approved by the Ministry of Investment, Trade and Industry and 30.0 million shares with selected investors.
M&A Securities will underwrite 35.0 million shares earmarked for the Malaysian public and eligible persons.
The proceeds from the public issue are intended for capital expenditure for HSS’s manufacturing facilities, as well as for the repayment of borrowings, working capital and estimated listing expenses.
The planned capital expenditure includes installing a new biscuit production line, purchasing machinery to automate the back-end stages of both biscuit and cookie production lines, and installing a new automated cake production line to improve manufacturing efficiency, expand capacity, and support a wider range of product offerings.
HSS managing director Goh Chen Chang said the IPO will enable it to strengthen its manufacturing capabilities, improve operational efficiency and support the continued development of its product portfolio and brands as the group pursues its next phase of growth.
The group has established a broad market presence through its extensive distribution network comprising approximately 332 wholesalers, five distributors and 112 retailers. - Bernama
