ACE Market-bound Wentel Engineering Holdings Bhd (Wentel Engineering) sets its initial public offering (IPO) price at 26 sen per share, with market capitalization of RM299 million, based on the group’s enlarged share capital of 1.15 million shares.
The group announced this after it unveiled IPO prospectus at EQ Hotel in Kuala Lumpur today (Jan 15), in conjunction with its proposed listing on the ACE Market of Bursa Malaysia Securities Berhad, which was scheduled on 6 February 2024.
Wentel Engineering, which is principally involved in the fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products, aimed to raise an estimated gross proceeds of RM71.03 million via the issuance of 273.2 million new shares.
“The proceeds raised from the IPO will enable the company to cater for the next phase of its business expansion.
The group has earmarked 56.31% of the proceeds to part finance the construction of its new manufacturing plant and 35.24% to part finance the purchase of new machinery and equipment. The remaining proceeds will be for listing related expenses,” it said in a statement.
Executive director Wong Chun Wei said the company has an established track record of approximately 22 years as a fabricator of semifinished metal products and metal parts and approximately 18 years as an assembler of finished products since the commencement of operations in 2001.
“Since the inception of our business, we have developed long-term relationships with our customers where some of our major customers have been dealing with us for 10 years or more.
“This demonstrates our ability to continue to meet our customers’ requirements and expectations and more importantly, our ability to maintain our business relationships with our existing customers which will serve as an important reference point for potential customers,” he said.
He said with the listing status and proceeds from the IPO, the company is committed to ongoing growth, innovation and sustainable profitability.
“This IPO represents a new chapter in our journey, providing us with the platform to move forward with greater velocity and the opportunity to build long-term value for our stakeholders.
“As we launch our prospectus today, I invite our stakeholders to witness and participate in the forthcoming journey of creating technologically advanced facilities for the industries of the future,” Wong added.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for this listing exercise.
Its corporate finance head Ku Mun Fong said Wentel Engineering’s promoters and management team have played an instrumental role in growing the group’s business over the past two decades to what it is today.
“It has built a strong foundation to expand the group’s business operations towards becoming a significant player in the industries it served.
“The listing exercise will certainly strengthen the stature of Wentel Engineering, boost its market presence and fund its business growth,” he said.
The application period of the IPO will be made available starting today and will close on Jan 22 at 5pm.
