PETALING JAYA: Life Water Bhd, a local beverage manufacturer yesterday entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Investment) for the company’s initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd (Bursa Securities).
The IPO entails a public issue of 97,563,000 new ordinary shares (issue shares) and an offer for sale of 28,390,000 existing ordinary shares.
Life Water is a beverage manufacturer specialising in the manufacturing and distribution of drinking water and carbonated drinks, primarily serving the Sabah market. The company’s operations are supported by its plastic packaging manufacturing and distribution channels, which enhances its overall business efficiency.
Headquartered in Sandakan, Life Water also operates production facilities in both Sandakan and Kota Kinabalu, with strategically located distribution centres in Sandakan, Kota Kinabalu and Lahad Datu to ensure efficient delivery across the region.
Its well-known home-grown beverage brands include K2, Sasa, and Sabah Water for drinking water, as well as 2more and TRITONiC for carbonated drinks. In addition to its own brands, the company also provides contract manufacturing services for private label drinking water for petrol stations, hypermarkets, wholesalers, and hotels.
The gross proceeds from Life Water’s IPO have been allocated for significant business expansion initiatives, supplement working capital requirements, and defray listing expenses. These include the purchase of an additional drinking water manufacturing line for its Sandakan Sibuga Plant 1, and the establishment of a new manufacturing plant – Sandakan Sibuga Plant 2 with an estimated built-up area of 50,000 sq. ft. comprising both factory and office spaces.
The company also plans to enhance its existing plastic packaging facilities in Kota Kinabalu with KK IZ8 Plant 1 to be converted into a dedicated plastic packaging manufacturing plant to support its beverage operations. Furthermore, Life Water plans to set up a second distribution centre in Sandakan, with a depot for its delivery truck fleet, as the current warehousing space is fully utilised. These expansions are aimed at supporting future production growth and enhancing operational efficiency across its beverage options.
Life Water co-founder and managing director Liaw Hen Kong said, “We are thrilled to take this significant step forward with our IPO and are pleased to have MIDF Investment as our principal adviser in this journey. The proceeds from the IPO will enable us to accelerate our expansion plans, including upgrading our production capabilities and enhancing our distribution network, all while supporting our growing operations across Sabah. This marks an exciting chapter for Life Water as we strengthen our position in the beverage industry and continue to provide quality beverages at affordable prices to our customers.”
MIDF Investment deputy CEO Datuk Seri Diraja Nur Julie Gwee Ariff said the drinking water industry, while often overlooked, is one of the most resilient sectors globally.
Furthermore, she added that Life Water has positioned itself as a major player in Sabah’s beverage market, and the funds to be raised through this IPO will enable them to scale production, modernise facilities, and expand their distribution network.
MIDF Investment is the principal adviser, underwriter and placement agent to Life Water for the listing exercise.
