PETALING JAYA: Cutting tools manufacturer and distributor HPMT Holdings Bhd, which is planning to list on Bursa Malaysia Securities’ Main Market, is looking to use proceeds from its initial public offering (IPO) to purchase new machinery and equipment and working capital.
The group’s core businesses are divided into trading, coating and manufacturing.
HPMT in its draft prospectus exposure said it will be using 70.3% of the proceeds for the purchase of machinery and equipment. In addition to that, 9.3% will be spent on inventories, 9.2% on general working capital and 11.2% on listing expenses.
The IPO will entail the issuance of 16.42 million shares to the Malaysian public, 8.30 million shares to eligible directors and employees, 59.04 million to institutional and selected investors and 32.84 million shares to bumiputra investors approved by the Ministry of International Trade and Industry.
Heroz Mechanical is currently HPMT’s substantial shareholder, with 97% interest. After the IPO, the shareholding will be diluted to 62.6%.
HPMT recorded a revenue of RM14.89 million and revenue of RM85.15 million for FYE17.
Its revenue is driven both domestically and from overseas as its products have been sold to more than 30 countries (including Malaysia). They include those in Europe (such as Germany, Italy, Czech Republic, Denmark and Portugal), Asia (such as China, Japan, Turkey, Thailand and Indonesia) and others (such as Australia, United States of America and New Zealand).
Source: The Sun Daily