Edelteq Holdings Berhad has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd as part of its upcoming initial public offering on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO exercise will involve a public issuance of 100 million new shares, representing 18.78% of Edelteq’s enlarged share capital, and an offer for sale of 43.20 million existing shares, or 8.11% of the enlarged shares, through private placement to selected investors.
Out of the 100.00 million new shares, 26.63 million will be made available to the Malaysian public via balloting; 10.00 million shares made available to the eligible employees and persons who have contributed to the success of the Group (“Pink Form Allocations”); while the remaining 63.37 million shares are earmarked for selected investors through private placement.
Pursuant to the underwriting agreement, UOBKH will underwrite a total of 36.63 million new shares made available to the Malaysian public and Pink Form Allocations.
The group plans to allocate the majority of its IPO proceeds towards scaling up production capacity to meet growing demand for the services and the introduction of new products. This expansion will necessitate a larger production space for new machinery and additional office space for future human resource increases.
Edelteq is scheduled to be listed on the ACE Market of Bursa Securities by May 2023, with UOBKH as the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
