KUALA LUMPUR: Health foods and personal care provider NWE Resources Group Bhd has signed an underwriting agreement with KAF Investment Bank Bhd (KAF IB) in conjunction with its proposed initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.
The IPO comprises a public issue of 143.15 million new ordinary shares, representing 26.5% of the company’s enlarged issued share capital of 540 million shares upon listing.
NWE Resources said that of the total issue shares, 27 million will be made available to the Malaysian public via balloting, while 10.8 million will be allocated to eligible directors, employees and individuals who have contributed to the group’s success.
“The remaining 105.35 million shares will be offered to selected investors through private placement,” it said in a statement.
Under the agreement, KAF IB will underwrite 37.8 million shares comprising those allocated to the Malaysian public and eligible persons, the company said.
NWE Resources independent chairman Tunku Zain Al-’Abidin Tuanku Muhriz said the agreement brings the group closer to entering the public market.
“Malaysia’s economy has continued to expand, and the tourism sector in particular has seen renewed momentum with the government’s Visit Malaysia initiative.
“Homegrown companies serving the consumer and tourism-linked sectors have an opportunity to grow, and the capital market has a role in supporting them,” he said. — Bernama
