KUALA LUMPUR: Automotive manufacturer parts supplier KHPT Holdings Bhd aims to raise RM21.73 million from its initial public offering (IPO) on the ACE Market on Oct 8.
The IPO, priced at 20 sen per share, involves a public issue of 108.64 million new shares.
Based on the group's enlarged share capital of 402,386,413 shares at the aforesaid IPO price, its market capitalisation will be about RM80.48 million.
Application for the IPO shares will close on Sept 25.
KHPT mainly manufactures and sells automotive parts and components in Malaysia, catering to Proton and Perodua vehicles for over 20 years.
The products include body parts, seats structures and other parts like engine part and absorber parts customised and manufactured according to the varied requirements of each vehicle model.
They are sold to Proton and Perodua directly or their respective Tier 1 manufacturers.
According to KHTP, the IPO proceeds will mainly be deployed business expansion, with 75.3 per cent allocated for capital expenditure.
Broken down further, 50.8 per cent will be utilised for the purchase of press machines to expand group's manufacturing capacity, 20.7 per cent for acquiring automation equipment, including robotic arms, to enhance manufacturing efficiency by reducing manual labour. Additionally, another 2.1 per cent and 1.7 per cent will be allocated for the purchase of an overhead crane and for renovating the current factory at Telok Panglima Garang.
The remaining 3.2 per cent and 21.4 per cent of proceeds has been earmarked for working capital as well as listing related expenses.
"Our ability to consistently deliver high-quality automotive parts and components has enabled us to secure strong, long-term relationships with our valued Tier 1 customers and local automotive manufacturers," said KHPT group managing director Eloise See.
"With our new listing status and the proceeds from the IPO, we are dedicated to continuous growth, innovation, and sustainable profitability," she added.
KAF Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.