KHPT Holdings Berhad (KHPT), a long-time supplier to Proton and Perodua, has resorted to equity funding for its continued business expansion.
The company unveiled its initial public offering (IPO) prospectus at EQ Hotel, Kuala Lumpur Thursday. This is in conjunction with its proposed listing on the ACE Market of Bursa Malaysia which is scheduled on 8 October 2024.
The IPO proceeds will mainly be deployed towards business expansion, with 75.3% allocated for capital expenditure of which 50.8% will be utilised for the purchase of press machines to improve manufacturing capacity, and 20.7% for acquiring automation equipment. The balance of the proceeds will be allocated towards the purchase of equipment, factory renovation, and working capital.
KHPT and its subsidiary companies are principally involved in the manufacturing and sale of automotive parts and components. The Company has been an automotive parts and components supplier to Proton and Perodua vehicles for over twenty (20) years. The parts and components are sold to Proton and Perodua directly or their respective Tier 1 manufacturers.
For the financial year ended 31 December 2023, the Company recorded revenue of approximately RM114.08 million, while revenue for the latest six-month financial period ended 30 June 2024 stood at approximately RM52.32 million.
According to its statement, KHPT targets to raise gross proceeds of approximately RM21.73 million via the issuance of 108,644,300 shares at an IPO price of RM0.20 per share.
The public issue portion of the IPO will be made available from Thursday and application will close on 25 September 2024 at 5.00 p.m.
