KUALA LUMPUR: EPB Group Bhd, a one-stop food processing and packaging machinery solutions provider, aims to raise RM40.08 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities slated for Aug 23.
At the IPO price of 56 sen per share, EPB will have a market capitalisation of RM208.32 million upon listing.
EPB Group managing director Yeoh Chee Min said proceeds raised from the public issue are intended for building a new corporate office as well as a factory building with a warehouse and a showroom with a total built-up area of 70,000 sq ft.
This will include a three-storey corporate office with built-up area of 18,000 sq ft, and a factory building with additional built-up area of 52,000 sq ft to cater to the production of food processing and packaging machinery, warehouse and showroom.
“This new factory, part of it, we are going to develop more robotic equipment. Because robotics is the only way out to take out the hard work. So robots are the solution. We have many customers already in the industry, and most of them also need robots now, as labour is getting more and more expensive. For food standards, robots also provide a more hygienic operation,” he told a press conference at EPB Group’s IPO prospectus launch today.
Additionally, population growth in target markets like Indonesia and the Philippines contributes to increased demand for mass-produced foods.
Of the remainder of the proceeds, the largest portion of RM13 million or 32.43% will be allocated for the acquisition of land. Additionally, RM10.5 million or 26.2% will be used for the construction of a factory and RM1.1 million or 2.74% is earmarked for the purchase of machinery to enhance operational capabilities.
EPB Group will also allocate RM3 million or 7.49% of the proceeds to repay bank borrowings. Further-more, RM8.48 million or 21.16% will be directed towards working capital purposes and RM4 million or 9.98% of the funds will cover listing expenses.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent, and Wyncorp Advisory Sdn Bhd is the corporate finance adviser for EPB Group’s listing exercise.
