Wentel Engineering Holdings Berhad has entered into an underwriting agreement with TA Securities Holdings Berhad for the Initial Public Offering on the ACE Market of Bursa Malaysia Securities.
The IPO entails a public issue of 273,200,000 new ordinary shares and an offer for sale of 46,000,000 existing ordinary shares. Of the 273,200,000 Public Issue Shares, 57,500,000 Public Issue Shares will be made available to the Malaysian public via balloting, 33,000,000 Public Issue Shares will be allocated to the eligible directors, employees and other persons who have contributed to the success of the group, 38,950,000 Public Issue Shares will be allocated by way of private placement to selected investors and the remaining 143,750,000 Public Issue Shares allocated for Bumiputera investors approved by Ministry of Investment, Trade and Industry.
TA Securities will underwrite a total of 57,500,000 Public Issue Shares, being the portion made available to the Malaysian public via balloting.
Wentel Engineering Group is principally involved in the fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products for the manufacturers of several industries such as security screening equipment, computer numerical control machines, semiconductor manufacturing equipment, medical diagnostics equipment, passenger coaches and industrial 3D printers.
The group will use the IPO proceeds to part finance the construction of 2 blocks of single storey factory (with double storey office) and 2 blocks of workers’ hostel. The New Manufacturing Plant is expected to provide the Wentel Engineering Group with net additional built-up area of approximately 254,381 sq. ft. for its operations and workers’ accommodation. It will also utilise the IPO proceeds to part finance the purchase of new machinery and equipment for the New Manufacturing Plant.
TA Securities, besides being the sole underwriter of Wentel Engineering’s IPO, is also the Principal Adviser, Sponsor and Placement Agent for this exercise.
