PETALING JAYA: Home furniture manufacturer Wegmans Holdings Bhd is looking to list on the ACE Market of Bursa Malaysia and will use the proceeds from its proposed initial public offering (IPO) for capital expenditure and working capital.
In a draft prospectus exposure on the Securities Commission website, the group said the bulk of the fund raised will be used for the construction of new factories for manufacturing, new management head office, showroom, as well as workers’ hostel.
Wegmans’ IPO involves the public issue of 100 million new shares, of which 25 million shares will be made available for Malaysian public, 15 million for eligible directors, employees and persons who have contributed to the group and its subsidiary’s success.
Meanwhile, the remaining 10 million shares will be made available by way of private placement to institutional and identified investors, and 50 million shares to identified bumiputra investors approved by the Ministry of International Trade and Industry.
There will also be an offer-for-sale of 50 million of existing shares via private placement.
Wegmans is involved in the design, manufacture and sale of home furniture products using a variety of solid wood and composite wood materials. Its customers are mainly wholesalers, retailers, chain stores and traders. It owns one manufacturing factory and rents another in Muar.
Most of its home furniture products are exported, and more than 90% of its revenue is from exports.
Currently, it is present in 75 countries, which include, Japan, US, Australia, Singapore, Korea, Canada, UK and other European countries.
Wegmans plans to increase its production capacity, further expand and diversify its customer base and increase its product range and develop new product designs.
For FY16, its net profit jumped 18.1% to RM15.3 million, compared with RM12.95 million in FY15. It has total assets of RM61 million and total liabilities of RM36.4 million.
Source: The Sun Daily