KUALA LUMPUR: Main-market-bound Mega Fortris Berhad plans to raise RM99.07 million through its initial public offering (IPO) by issuing 147.87 million new shares at 67 sen per share.
The company, which is involved in the design, manufacturing, and trading of security seals and related products, is scheduled to be listed on Nov 11, 2024.
Group managing director and group chief executive officer Datuk Ng Meng Poh said that of the total proceeds, RM42.98 million, or 43.38 per cent will be used to partly fund the establishment of new production facilities, including automated production lines for security seals, which will be centralised in the United Kingdom (UK).
Another RM45 million (45.42 per cent) will be utilised for a new business venture in Macao, China, where Mega Fortris will provide a total solution for supplying and handling playing cards in sealed security boxes.
The remainder of the proceeds will be used for listing-related expenses, Ng said in a statement following the company's prospectus launch today.
"We are excited to implement our business strategies, including expanding production facilities in Malaysia, establishing a new UK factory to serve customers in Europe, the Americas, the Middle East, and Africa, and venturing into a new business of supplying and handling playing cards in sealed security boxes in Malaysia and Macao. "The new business venture complements our existing business of manufacturing security boxes and seals, allowing us to offer an end-to-end solution to our customers, which are casino operators, from production to destruction of playing cards," he said.
Meanwhile, group chief operating officer Jason Francis White highlighted that the company currently produces 551 million seals annually.
"With the establishment of the UK factory, the company is expected to increase production by an additional 200 million seals, representing about 40 per cent of total annual production," he added.
According to the prospectus, the IPO entails the issuance of 147.87 million new ordinary shares, representing 17.5 per cent of the company's enlarged issued share capital.
Based on an enlarged issued share capital of 844.97 million shares, Mega Fortris will have a market capitalisation of RM566.13 million.
Applications for the public issue are open from today and will close on Oct 28, 2024, at 5 pm.
RHB Investment Bank Bhd is the sole principal advisor, joint underwriter, and joint placement agent for the IPO, while AmInvestment Bank serves as the joint underwriter and joint placement agent.