KUALA LUMPUR: HSS Holdings Bhd has set a RM13.5mil fundraising target for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The bakery products company said at its prospectus launch the IPO will comprise a public issue of 74 million new shares and an offer for sale of 52.5 million existing shares at an IPO price of 18 sen per share.
Of the IPO proceeds, RM2.57mil will go towards capital expenditure for the group's manufacturing facilities while RM4.5mil will be used to repay bank borrowings.
The group will put RM2.93mil towards working capital while the reamining RM3.5mil will be used to defray the listing expenses.
HSS is principally involved in the sourcing of bakery products, trading of bakery and other products, as well as the manufacturing of bakery products.
According to the group, the planned upgrades to its manufacturing facilities include the installation of a new biscuit production line, enhancements to its existing cookies production line, backend automation for selected production processes, and a new automated cake production line.
"Over the years, we have built a solid foundation in the bakery products market through our wide product range, established distribution network and long-standing customer relationships.
"Through this IPO, we aim to strengthen our production capabilities, improve operational efficiency and support the continued growth of our business," said HSS managing director Goh Chen Chang in a statement.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for this IPO.
