KUALA LUMPUR: Life Water Bhd aims to raise RM63.42 million for its initial public offering (IPO), priced at 65 sen per share.
This is in conjunction with its proposed listing on the Main Market of Bursa Malaysia which is scheduled on Nov 13.
In a statement today, the beverage manufacturer said the IPO includes a public issue of 97.56 million new shares and an offer for sale of 28.39 million existing shares to selected investors through private placement, collectively offering investors a 26.62 per cent stake in the company.
The company plans to allocate RM19 million for a new drinking water manufacturing line at its Sandakan Sibuga Plant 1 and RM12 million for a similar line at Plant 2.
"Other allocations include RM12.6 million for a second distribution center in Sandakan, RM9.61 million for expanding existing plastic packaging facilities in Kota Kinabalu, and RM4.21 million for working capital requirements.
"The remaining funds will cover listing expenses," it added.
Managing director Liaw Hen Kong said with an 11 per cent market share in Malaysia's bottled water market, Life Water is set to expand further, especially with its new Keningau plant coming online in December 2024.
Liaw said the IPO proceeds will fund key expansions, including additional manufacturing lines and new distribution centres.
"Looking ahead, we plan to grow our presence in Sarawak, Brunei and beyond, while also diversifying our product portfolio.
"The increasing demand for beverages, supported by rising household income and tourism in Sabah, positions Life Water for continued success," he added.
MIDF Amanah Investment Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.