KUALA LUMPUR: EPB Group Bhd, a food processing and packaging machinery solutions provider, aims to raise RM40.08 million from its listing on the ACE Market of Bursa Malaysia on Aug 23, 2024.
Of the company's initial public offering (IPO) proceeds, RM13 million (32.4 per cent) will be allocated for land acquisition, RM10.50 million (26.2 per cent) for factory construction, and RM8.48 million (21.16 per cent) for working capital.
Additionally, RM4 million (9.98 per cent) will be used for listing expenses, and RM3 million (7.49 per cent) for bank loan repayment.
EPB's IPO involves a public issue of 71.57 million new ordinary shares and an offer for sale of 40 million shares.
Of the 71.56 million new shares, 19.57 million, representing 5.26 per cent, will be available for application by the Malaysian public through balloting.
Half of this allocation, or 9.78 million shares, will be reserved for Bumiputera public investors.
Some 21.19 million shares, or 5.7 per cent of the enlarged issue capital upon listing, will be reserved for eligible persons.
Furthermore, 30.8 million shares, representing 8.28 per cent of the enlarged issue capital, will be available for application by Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (MITI).
For the offer-for-sale portion, 15.69 million shares, representing 4.22 per cent of the enlarged issued share capital upon listing, will be allocated to Bumiputera investors approved by MITI.
Additionally, 24.3 million shares, or 6.53 per cent of the enlarged issued share capital upon listing, will be made available to selected investors.
The IPO will be offered at 56 sen per share, and EPB will have a market capitalisation of RM208.32 million.
EPB managing director Yeoh Chee Min stated that the IPO acts as an entry point to the capital markets, offering the company the essential resources to drive its next stage of growth and innovation.
"Particularly in the realm of robotics integration in the food processing and packaging machinery solutions we currently provide to our customers," he said.
Yeoh mentioned that most of the funds being raised will be allocated for the new factory, which is being developed with more robotic equipment.
"Robots are essential for reducing hard work, especially in operations where labour is very expensive.
"Many of our customers in the industry now require robots, as labour costs continue to rise," he said at the press conference.
Yeoh added that robots offer more hygienic operations, which is crucial for maintaining food standards.