KUALA LUMPUR: Liftech Group Bhd expects to raise RM23mil from its initial public offering (IPO) under its ACE Market listing exercise, with nearly 60% of the proceeds earmarked for the repayment of bank borrowings.
In a statement, the industrial lifting and handling equipment specialist said RM13.8mil, or 59.8% of the IPO proceeds, will be used to repay borrowings incurred for the acquisition of operational facilities in Bukit Minyak, Penang, and Kota Kinabalu, Sabah.
The facilities will strengthen its presence in Northern Peninsular Malaysia and East Malaysia and are expected to support its future growth plans.
Managing director Bernard Ng said repaying the borrowings would strengthen the company's balance sheet and provide greater financial flexibility.
“The Bukit Minyak and Kota Kinabalu facilities have strengthened our market presence and enhanced our ability to serve customers across key growth regions.
“The repayment of these borrowings will improve our financial position and support our long-term expansion plans as a listed company,” he said.
The company has allocated RM1.7mil, or 7.5% of the proceeds, for the purchase of new machinery and equipment at its Taiping factory to enhance production capacity and increase automation in its customisation and manufacturing operations.
Another RM1mil, representing 4.4% of the proceeds, will be used to renovate and upgrade facilities and office space at the factory, while RM2mil, or 8.7%, has been earmarked for working capital, mainly for the purchase of steel materials, components and accessories used in manufacturing activities.
The remaining RM4.5mil, or 19.6% of the proceeds, will be used to defray listing expenses.
As at May 10, 2026, Liftech had an unbilled order book of RM41.6mil, which is expected to be recognised over the next six to nine months.
For the financial year ended Dec 31, 2025, the company posted a net profit of RM6.9mil on revenue of RM57.9mil. It recorded a gross profit margin of 41.2% and a net profit margin of 11.9%.
Under the IPO, Liftech will issue 79.2 million new shares and offer 15.8 million existing shares for sale, representing 25.2% and 5% respectively of its enlarged share capital of 314.9 million shares.
Of the new shares, 15.8 million will be made available to the Malaysian public through balloting, 7.2 million will be allocated to eligible directors and employees under the pink form allocation, 39.4 million will be offered to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 16.8 million will be placed out to selected investors.
All 15.8 million shares under the offer for sale will be placed to selected investors.
At an IPO price of 29 sen per share, Liftech is expected to achieve a market capitalisation of RM91.3mil upon listing.
The IPO is open for subscription until June 16, 2026, while the company's ACE Market debut is scheduled for June 30, 2026.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser.
