KUALA LUMPUR: EGH International Bhd (EGHI) has launched its prospectus for an initial public offering (IPO) of 360 million shares ahead of its planned listing on the ACE Market of Bursa Malaysia on Oct 16.
The turnkey interior fit-out solutions provider said in a statement that the IPO comprises 240 million new shares and an offer for sale of 120 million existing shares at 16 sen apiece.
Of the total, 80 million shares will be offered under the retail offering, comprising 50 million shares for the Malaysian public and 30 million shares for eligible directors, employees and other persons who have contributed to the group.
Another 280 million shares will be offered to institutional and selected investors via private placement.
The issuance of the 240 million new shares is expected to raise RM38.4mil in gross proceeds.
EGHI said the proceeds would be used to construct a new head office, warehouse and Interior Premium Outlet showroom in Puchong, Selangor, repay borrowings and provide working capital for business expansion, with the balance allocated for listing expenses.
The proposed five-storey industrial building will sit on about 2.67 acres and have a built-up area of about 130,000 sq ft, supporting the group's growing project volumes and retail footprint.
EGHI is principally involved in providing interior fit-out services as well as the sale of furniture, fittings and equipment and building materials.
Over the past 15 years, the group has completed more than 200 projects across Malaysia, Cambodia, India and Hong Kong, including projects involving more than 57 hotels and resorts, 19 healthcare facilities, three educational institutions and five airport lounges.
Group managing director Datuk Weslie Lim said the IPO proceeds would strengthen the group's balance sheet and support its expansion plans.
“Since establishing ECO Interiors in 2010, we have grown into an established turnkey interior fit-out solutions provider with a portfolio of more than 200 completed projects, and we are proud to invite Malaysian investors to be part of our next chapter.”
“The proceeds will strengthen our balance sheet and fund our expansion, positioning us to pursue larger, high-specification interior fit-out projects and grow our B2C retail footprint,” he said.
Applications for the IPO opened on Sept 24 and will close at 5pm on Oct 5. Balloting is expected on Oct 7, with the allotment of IPO shares targeted for Oct 14 and the ACE Market listing slated for Oct 16.
Berjaya Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
