KUALA LUMPUR: Oxford Innotech Bhd, a provider of integrated solutions specialising in precision engineering components, is planning an initial public offering (IPO) on Bursa Malaysia's ACE Market.
The IPO will involve the issuance of up to 194.46 million shares, comprising a public issuance of 143.46 million new shares and the sale of up to 50 million existing shares.
The company's managing director, Thean Gin Ng, currently holds a combined 56.61 per cent stake, which will decrease to 42.35 per cent following the IPO.
According to its draft prospectus file, Oxford Innotech plans to use the gross proceeds from the public issuance for construction of a new factory, purchase or refinancing of new machinery, general working capital and estimated listing expenses.
The company said plans to initiate phase two of its Penang Science Factory 2 project in 2025, aiming to expand its production area by 67,722 square feet and office space by 37,234 square feet.
Oxford Innotech stated that the construction of the new facility will be fully financed through proceeds from the public issue.
It said any shortfall in funding will be covered through internally generated funds or bank borrowings.
Oxford Innotech said upon completing the construction of the Penang Science Park Factory 2, it plans to relocate parts of its sheet metal fabrication operations from Batu Kawan Factory 1 and 2, as well as CNC machining operations from Penang Science Park Factory 1 and Sungai Petani Factory, to the new facility.
They added that this move aims to address production space constraints, cater to growing customer demand for modular building systems, and establish the headquarters at the new site.
Malacca Securities Sdn Bhd serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO.