PETALING JAYA: Johor-based furniture manufacturer Mobilia Holdings Bhd aims to raise RM13.8 million from its initial public offering (IPO) on Bursa Malaysia’s ACE Market, slated for Feb 23, 2021, which entails the issuance of 60 million new shares at 23 sen per share.
According to the group’s prospectus, RM5.8 million or 42% of the proceeds raised from the corporate exercise will be earmarked for the expansion of its premises in Muar, Johor, with the construction of an office and showrooms as well as two additional factory blocks.
Mobilia’s business development manager and alternate director, Ervin Quek, said: “Part of the proceeds from the IPO will be utilised to expand our current manufacturing plant to support our long-term business growth and purchasing new types of machinery is also within our plan to increase automation in our manufacturing process.
“The expansion of our factory which comprises two blocks of single-storey detached factory buildings are in full operation now. This beef up our production capacity and enables the company to take in more orders, which is also in line with our aim to develop at least 60 new designs of home furniture annually.”
In addition, RM1.3 million or 9.4% be used to purchase machiney, RM1.8 million or 13% earmarked for the repayment of borrowings and RM1.9 million or 13.8% for working capital. The remaining RM3 million or 21.7% will be used to defray the listing expenses.
With regard to the issuance, Mobilia stated that 20 million new shares will be made available to the Malaysian public, 12 million shares have been allocated to its eligible employees and persons who have contributed to its success, while the remaining 28 million will be offered via private placement to selected investors.
In addition, the group will offer a private placement of 40 million existing shares to selected bumiputra investors approved by the international trade and industry ministry.
Following the listing exercise, Mobilia’s market capitalisation is expected to grow to RM92 million from an enlarged share issuance of 400 million shares.
Mobilia said that for FYE2020, its profit after tax (PAT) stood at RM10.62 million, a 45.4% decline from a PAT of RM19.45 million reported for FYE2019, due to the Covid-19 outbreak and the imposition of the movement control order last year.
In the previous year, export sales contributed 73.4% of its revenue.
Moving forward, Mobilia aims to expand its customer base and export market.
“We know that the demand for home furniture continues to increase globally as overall population growth creates demand for housing. Furniture is an essential element for every home, thus the global demand for furniture is expected to remain strong over the longer term. Given this, we are optimistic about Mobilia’s growth for the years to come,” said Quek.
To date, the company has exported its products – mainly dining, living and bedroom furniture – to countries in Asia, North America, Europe, Middle East, South America, Australasia, and East Africa.
