KUALA LUMPUR: Feytech Holdings Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd and AmInvestment Bank Bhd for its initial public offering (IPO) on the Main Market of Bursa Malaysia.
According to FeyTech, the proceeds from the IPO will be utilised to partially finance the acquisition of land and the construction of a new corporate office with a manufacturing plant and warehouse in Klang Valley with a build-up area of 85,000 square feet (sq ft).
Upon completion, Feytech intends to relocate all its existing operations in Petaling Jaya to this new corporate office with a manufacturing plant and warehouse.
In addition, FeyTech said part of the proceeds from the IPO will be used to construct a new manufacturing plant, warehouse, annex office building, and staff hostel to be built on a part of vacant industrial land in Pekan Sungai Karangan, Daerah Kulim, Negeri Kedah (Kulim Plant 2) with a total estimated built-up area of 84,000 sq ft.
The total manufacturing space and storage space for Feytech Group's manufacturing of automotive seats is expected to increase by approximately 55,000 sq ft upon the completion of Kulim Plant 2.
"Feytech Group will also utilise part 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 the purchase of materials and supplies and general working capital," it added.
The automotive cover manufacturer and automotive seat manufacturer said the IPO entails a public issue of 143.32 million new shares and an offer for sale of 109.62 million existing shares.
Of the public issue shares, 42.16 million will be made available to the Malaysian public via balloting, 25.3 million will be allocated to eligible directors, employees, and persons who have contributed to the success of Feytech, and the remaining 75.87 million shares will be allocated by way of private placement to selected investors.
FeyTech said out of the 109.62 million existing ordinary shares offered for sale, 105.40 million will be allocated by way of private placement for Bumiputera investors, while 4.22 million existing ordinary shares will be allocated by way of private placement to selected investors.
Pursuant to the underwriting agreement, the joint underwriters will underwrite a total of 67.46 million public issue shares, representing the portion allocated to the Malaysian public and pink form allocations, it said in a statement.
Besides acting as a joint underwriter, TA Securities is also the principal adviser, managing underwriter, and joint placement agent for this exercise.
AmInvestment Bank is the joint underwriter and joint placement agent for Feytech Holdings's IPO.
