KUALA LUMPUR: Feytech Holdings Bhd made its debut on the Main Market of Bursa Malaysia at RM1.10, a credible 37.5 per cent premium over its initial public offering (IPO) price of 80 sen.
The company successfully raised a total of RM114.66 million through the public issue of 143.32 million new ordinary shares (public issue shares).
The IPO raised gross proceeds of RM114.16 million, of which 28.5 per cent will be used for the acquisition of land and construction of a new corporate office, which will include a manufacturing plant and warehouse.
Another 16.4 per cent of the proceeds will be used for the construction of the new Kulim Plant 2.
Of the total, RM52.18 million will be used to finance working capital and RM3 million for the purchase of new machinery.
Feytech independent non-executive chairman Datuk Mazlan bin Mohamad said at Feytech, the company understands the importance of adaptability and diversity in today's dynamic market landscape.
In view of this, Mazlan decided to enter the automotive seat manufacturing business two years ago, and today the company's stand as the only player in the industry producing both the automotive seats and automotive covers.
"We strongly believe in the future growth prospects of our automotive seating business, as evidenced by the growth seen from 2022 to 2023 alone, where we witnessed a threefold increase in revenue from our automotive seating manufacturing division," he said.
Feytech's listed shares are classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia.
The company's public issue portion, which was made available to the Malaysian public via balloting, was oversubscribed by 15.6 times, with a total of over 14,000 applications for approximately 701.36 million shares.
TA Securities is the principal adviser, managing underwriter, joint underwriter, and joint placement agent for this exercise.
AmInvestment Bank is the joint underwriter and joint placement agent for Feytech Holdings's IPO.