PETALING JAYA: Feytech Holdings Bhd unveiled its initial public offering (IPO) prospectus today in conjunction with its proposed listing on the Main Market of Bursa Malaysia Securities on May 21.
Feytech Holdings targets to raise estimated gross proceeds of RM114.66 million via the issuance of 143,324,800 new shares at an IPO price of 80 sen each. Based on the group’s enlarged share capital of 843.2 million shares and the IPO price, its market capitalisation will be about RM674.56 million.
Established in 2002, Feytech Group (Feytech Holdings and its subsidiaries) is principally an automotive cover manufacturer and automotive seat manufacturer based in Malaysia. The group mainly manufactures automotive covers for the original equipment manufacturer (OEM) market segment. Customers in the segment comprise automotive vehicle OEMs such as Mazda Malaysia (for Mazda 3, CX-5, CX-8 and CX-30) and Kia Malaysia (for Kia Carnival and Sorento), as well as Tier 1 automotive seat and/or interior part manufacturers which serve other local OEMs for brands such as Mazda and Hyundai.
Feytech Group also manufactures automotive covers for the predelivery inspection and replacement equipment market segments which comprise automotive distributors, car owners, used car dealers, importers, automotive dealers, car accessory retailers and automotive cover installers.
Feytech Holdings has earmarked 10.1% of the proceeds to part finance the acquisition of land in Klang Valley and 18.4% for the construction of a new corporate office with manufacturing plant and warehouse on the land, with a built-up area of about 85,000 sq ft. It intends to relocate all its existing operations in Petaling Jaya to the new corporate office with manufacturing plant and warehouse upon their completion.
In addition, 16.4% of the IPO proceeds will be used to construct a manufacturing plant, warehouse, annex office building and staff hostel on part of a piece of vacant industrial land in Pekan Sungai Karangan, Kulim, Kedah (Kulim Plant 2) with a total estimated built-up area of 84,000 sq ft.
Feytech Group will also utilise 2.6% of the IPO proceeds to purchase new machines which include 75 sewing machines, an automated leather cutting machine and a patterning machine as well as 45.5% to purchase materials and supplies and general working capital.
Feytech Holdings executive director and CEO Connie Go said they have been manufacturing automotive covers for over two decades and have expanded downstream into the manufacturing of automotive seats since 2021 which enabled them to provide a complementary range of services to manufacture both automotive seats and automotive covers to automotive vehicle OEMs.
“This has allowed us to expand our customer base to not only target automotive vehicle OEMs and Tier 1 automotive seat and/or interior part manufacturers, but also automotive dealers, automotive distributors, used car dealers, car owners, car accessory retailers, importers and automotive cover installers,” she added.
The public issue portion of the IPO was made available from yesterday and applications will close on May 8.
