Mega Fortris Bhd is set to raise RM99.07 million through its upcoming initial public offering (IPO), issuing 147.87 million new shares at 67 sen per share. The security seal manufacturer is scheduled to be listed on the Main Market of Bursa Malaysia on 11 November 2024.
The company’s Group Managing Director and Chief Executive Officer, Datuk Ng Meng Poh, announced that 43.38% of the funds raised will be allocated to partially finance new production facilities in the UK, focusing on automated production lines for security seals. A further 45.42% will go towards a new business venture in Macau, China, where the company will provide a complete solution for handling playing cards in sealed security boxes for casino operators.
“The new business venture complements our existing business of manufacturing security boxes and seals, allowing us to offer an end-to-end solution to our customers — from production to destruction of playing cards,” Ng explained during the prospectus launch.
The remaining proceeds will be used for listing-related expenses.
The IPO’s application period begins today and will close on 28 October 2024, at 5pm. RHB Investment Bank Bhd is the sole principal advisor, joint underwriter, and joint placement agent for the IPO, alongside AmInvestment Bank Bhd as joint underwriter and joint placement agent.
Kevin Davies, Managing Director and Chief Executive Officer of RHB Investment Bank Berhad, remarked that the IPO represents more than just a financial milestone for Mega Fortris. “Mega Fortris has shown remarkable foresight by continually innovating and adapting its offerings to meet challenges head-on. This agility positions the company well to capitalise on the growing demand for security solutions across industries such as logistics, pharmaceuticals, and high-value goods.”
Upon listing, Mega Fortris will have an estimated market capitalisation of RM566.13 million, based on the enlarged share capital of 844.97 million shares.
