Feytech Holdings Berhad has entered into an underwriting agreement with TA Securities Holdings Berhad and AmInvestment Bank Berhad today for the Company’s Initial Public Offering on the Main Market of Bursa Malaysia Securities Berhad.
Feytech Holdings and its subsidiaries are principally an automotive cover manufacturer and automotive seat manufacturer based in Malaysia. Feytech Group mainly manufacture automotive covers and seats for the original equipment manufacturer market segment. Customers in the OEM market segment comprises automotive vehicle OEMs such as Mazda Malaysia (for Mazda 3, CX-5, CX-8 and CX-30 car models) and Kia Malaysia (for Kia Carnival and Sorento car models), as well as Tier 1 automotive seat and/or interior part manufacturers which serve automotive vehicle OEMs for brands such as local OEM, Mazda and Hyundai.
The IPO entails a public issue of 143,324,800 new ordinary shares and an offer for sale of 109,616,000 existing shares. Of the 143,324,800 Public Issue Shares, 42,160,000 Public Issue Shares will be made available to the Malaysian public via balloting, 25,296,000 Public Issue Shares will be allocated to the eligible directors, employees and persons who have contributed to the success of Feytech Group while the remaining 75,868,800 Public Issue Shares will be allocated by way of private placement to selected investors.
Meanwhile, out of the 109,616,000 existing ordinary shares offered for sale, 105,400,000 will be allocated by way of private placement for Bumiputera investors approved by Ministry of Investment, Trade and Industry while 4,216,000 existing ordinary shares will be allocated by way of private placement to selected investors.
The group intends to use the proceeds to part finance the acquisition of land and the construction of a new corporate office with manufacturing plant and warehouse in Klang Valley with an approximately build-up area of 85,000 square feet. Upon the completion of the new corporate office with manufacturing plant and warehouse, Feytech Group intends to relocate all its existing operations in Petaling Jaya to this new corporate office with manufacturing plant and warehouse.
In addition, 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 a vacant industrial land in Pekan Sungai Karangan, Daerah Kulim, Negeri Kedah 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 the construction of Kulim Plant 2.
Feytech Group will also utilise part of the IPO proceeds to purchase new machineries which include 75 sewing machines, an automated leather cutting machine and a patterning machine as well as purchase of materials and supplies and general working capital.
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.
