KUALA LUMPUR: Sheet metal products manufacturer and scaffoldings supplier, BWYS Group Bhd en route for a listing on the ACE market of Bursa Malaysia in July 2024, expects to raise RM56.4 million from its initial public offering (IPO).
BWYS's IPO exercise encompasses a public issuance of 256.3 million new ordinary shares, representing 25.0 per cent of its enlarged share capital, as well as an offer for sale of 100.0 million existing shares, or 9.8 per cent of its enlarged share capital, by way of private placement to selected investors.
Out of the 256.3 million issue shares, 51.3 million issue shares will be made available to the Malaysian public via balloting process; 61.5 million issue shares to its eligible directors, employees and persons who have contributed to the success of BWYS (pink form allocations); 128.2 million issue shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry; while the remaining portion of 15.4 million issue shares are reserved for private placement to selected investors.
M&A Securities will underwrite 112.8 million issue shares made available to the Malaysian public and pink form allocations.
BWYS, via its subsidiaries, is principally involved in the manufacturing of sheet metal products comprising roofing sheets and trusses, industrial racking systems and welded pipes.
The group also engages in the supply of scaffoldings, as well as the trading of steel materials and steel related products.
This diverse product portfolio enables BWYS to serve the building construction as well as warehousing and storage industries, offering customers the convenience of sourcing multiple products from a single source.
This capability also allows it to cater to a broad customer base of over 1,600 active customers for the financial year ending 2022.
Beyond the domestic market, the group exports its products to the United States and other countries including Singapore, Indonesia, Australia, Bangladesh, the Philippines, United Arab Emirates and Brunei.
Backed by a 25-year track record in the sheet metal products industry, BWYS has established strong market coverage across Malaysia through its eight strategically located operational facilities across Penang, Selangor, Johor, Kelantan, Sarawak and Sabah.
This enables efficient market coverage and prompt delivery to their customers, translating to a key advantage for reseller customers by minimising their stock holding.
BWYS executive director and managing director Kang Beng Hai said majority of the IPO proceeds will be used to set up a new factory (New Penang Factory) to expand its manufacturing facilities for sheet metal products.
This will also address its existing Penang facility's space limitations and accommodate a new continuous production line.
Upon completion, its warehouse capacity will increase by more than 11-fold from 13,183 sq ft to 150,231 sq ft, allowing us to store higher inventory levels of raw materials and finished goods.
"We are purchasing new machinery and equipment including a new automated powder coating line as well as roll forming machines and related equipment to improve our manufacturing capabilities for roof trusses and industrial racking systems," Kang said in a statement.
BWYS is banking on Malaysia's economic growth, notably in the construction sector, to increase demand for roofing sheets, trusses, welded pipes and scaffoldings. This will be helped by anticipated growth in other key user industries such as manufacturing, and wholesale and retail trade sectors. -ends-