Leform Berhad debuts on the ACE Market of Bursa Malaysia Securities Berhad opening with a share price of 19.5 sen but sees the share dipping after 10:00 am in line with the markets downward trend.
The integrated steel products manufacturer and trader raised a total of RM71.5 million from the initial public offering which has allocated RM30 million (42.0%) for the construction of new headquarters, warehouse storage facility, and workers’ accommodation. Meanwhile, RM21.9 million (30.6%) and RM14.4 million (20.1%) are earmarked for working capital and repayment of bank borrowings, respectively. The remaining RM5.2 million (7.3%) will be used for listing expenses.
Managing Director of Leform Berhad, Mr. Law Kok Thye said, “Our listing today is part of a larger agenda of elevating Leform to the next growth phase in our corporate journey. Most immediately, the RM71.5 million proceeds raised will enable us to execute our business expansion plan. Aside from that, the new listing status could also generate positive ripple effects due to the greater overall confidence from our suppliers, employees, clients, and bankers.”
Regarding its dividend policy, Leform endeavours to maintain a payout ratio of not less than 20% of its annual audited net earnings.
MIDF Amanah Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for Leform’s IPO exercise
