KUALA LUMPUR: Mega Fortris Bhd will issue up to 295.74 million shares in conjunction with its listing on the Main Market of Bursa Malaysia
The company today entered into an underwriting agreement with RHB Investment Bank Bhd and AmInvestment Bank Bhd for its initial public offering (IPO).
The IPO entails the public issue of 147.87 million new shares, representing 17.5 per cent of the company's enlarged issued share capital.
A total of 42.25 million shares are reserved for the Malaysian public via balloting, of which 21.13 million shares will be set aside for Bumiputera investors.
A total of 25.35 million shares are earmarked for application by eligible persons.
The joint underwriters will underwrite the retail offering of 67.6 million issue shares, representing 22.86 per cent of the total IPO shares.
Additionally, 38.02 million shares will be made available by private placement to identified Bumiputera investors and the remaining 42.24 million shares will be allocated to institutional and selected investors through private placement.
Up to 147.87 million shares are offered for sale.
Proceeds from the IPO will partly finance the establishment of a new factory in the United Kingdom and a new business venture in Macao, while the remainder will be utilised for listing expenses.
"This development reflects our commitment to growing our security seal business and marks a key step in our plans to expand into new markets, including our upcoming factory in the UK and a new venture in Macao.
"We believe this will strengthen our global presence and enable us to continuously provide innovative security solutions to meet our customers' needs," said group chief executive officer and managing director Datuk Ng Meng Poh.
Mega Fortris expects to be listed in the fourth quarter of 2024.