KUALA LUMPUR: Johor-based automotive parts and lubricants distributor MSB Global Group Bhd has proposed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to reconstruct a new factory that will also serve as a warehouse.
The IPO entails a public issue of 133 million new shares and an offer for sale of 74 million existing shares.
According to a draft prospectus posted on Bursa Malaysia's website, the company plans to offer a 34 per cent stake in the company to investors.
Under the public issuance, 30.5 million shares will be made available to the public, 6.1 million will be for eligible directors and employees while 76.25 million shares are allocated for bumiputera investors.
Another 20.15 million shares will be made available for private placement to selected investors.
The factory has an estimated built up area of approximately 79,905 sq ft on a freehold land that spans 1.01 hectare in Ulu Tiram, Johor Bahru.
The land is owned by the company's managing director, Datuk Ow Kee Foo who had granted an option to MSB Machinery to rent the land for a period of three years, renewable for two consecutive three-year period each.
"We intend to reconstruct and refurbish the building to house our own factory producing automotive lubricants and fluids using blenders and automated fill-and-finish production lines together with a warehouse to store our in-house branded automotive lubricants," it said in its prospectus.