PETALING JAYA: MTAG Group Bhd is seeking to raise RM72.3 million from its listing on the ACE Market of Bursa Malaysia on September 25 with an issue price of 53 sen per share.
It is a printing and materials converting specialist, providing printing of labels and stickers and customised converting services.
The group said in a statement that it has earmarked RM33 million or 45.6% of the proceeds from the initial public offering (IPO) for the acquisition of 10 acres of land for its new manufacturing plant.
Construction work will be carried out in two phases and the first phase will comprise a built-up area of approximately 200,000 sq ft. In comparison, the existing facilities only have a built-up area of 83,500 sq ft.
“One of the main purposes of our IPO exercise is to raise funds to execute our expansion strategies in order to fuel the group’s next phase of growth,” said MTAG group managing director Chaw Kam Shiang.
The group also plans to boost its service offering with the addition of digital press printing alongside the existing letterpress printing and thermal transfer printing.
Some RM13 million or 18% of the IPO proceeds has been allocated for MTAG’s capital expenditure to purchase 11 new machineries.
The purchase is expected to boost its annual production of labels and stickers to 636.8 million pieces from the current capacity of 324.5 million pieces.
Meanwhile, the remaining of the proceeds will be utilised towards the group’s bank borrowings, working capital and defraying listing expenses amounting to RM10.0 million, RM12.5 million, and RM3.8 million respectively.
On the whole, MTAG’s listing exercise entails an issuance of 136.32 million new shares in the group, representing 20% of its enlarged share capital, along with a sale offer for 68.16 million of its existing shares.
Some 34.08 million new shares are available for the Malaysian public.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
