KUALA LUMPUR: Construction engineering solutions and services provider Plytec Holding Bhd, en route to a listing on Bursa Malaysia’s ACE Market on Nov 15, plans to raise RM37.12 million from its initial public offering (IPO) to expand its business within Asean.
At an issue price of 35 sen per share, the IPO entails an issuance of 106.06 million new shares. Upon listing, the group will have a market capitalisation of RM212.12 million.
The company, which is also a trading and building materials distributor, plans to use RM9 million (24.24%) from the IPO for the repayment of borrowings, RM8 million (21.55%) for capital expenditure and RM7.8 million (21.01%) for the construction of factories as well as centralised labour quarters on its land at Olak Lempit.
In addition, it will use RM6.3 million (17.03%) of the proceeds for working capital, RM4 million (10.78%) for estimated listing expenses and RM2 million (5.39%) for the purchase of software and hardware systems.
Plytec group managing director/CEO Yang Kian Lock said the company aims to strengthen its position as a construction method engineering (CME) solutions and digital design engineering solutions provider, focusing on digital smart technology.
“We are looking forward to venture upstream into building manufacturing facilities for temporary works equipment and consolidating our support facilities on the prime Olak Lempit land, which occupies over 801,000 sq ft,” he told during a press conference after the launch of Plytec’s prospectus.
Meanwhile, COO Louis Tay Chee Siong said that Plytec has plans to grow its CME segment within the Asean region.
To date, it has established partnerships in Thailand and Myanmar in regards to its CME segment.
“For CME, our plan is to expand within Asean and we have (participated in) exhibitions in Vietnam, Indonesia and next month, we are going to the Philippines.
“Currently, we are providing (CME) services to East Europe, (and) we have a contract in Hungary. We are also providing services to East Malaysia. However, for Singapore, we provide prefabricated construction solutions,” he said.
Touching on raw material prices, Yang remarked that the current prices were quite stable as a significant amount of its products are sourced from China.
He explained that the company is only partially impacted by US dollar rates as it mostly trades in Chinese Renmimbi.
As at Sept 25, it has an outstanding order book of RM75.53 million.
KAF Investment Bank Bhd is the principal adviser, sponsor, managing underwriter, joint underwriter and joint placement agent for this IPO exercise, while Kenanga Investment Bank Bhd is the joint underwriter and joint placement agent.
