PETALING JAYA: MTAG Group Bhd has entered into an underwriting agreement with M&A Securities for its listing on Bursa Malaysia’s ACE Market.
The group said in a statement that the initial public offering (IPO) will entail a public issuance of 136.32 million new shares in the group, representing 20% of its enlarged share capital.
A further 68.16 million existing shares will be made available to selected investors by way of private placement.
“The IPO proceeds allow us to execute our expansion strategies, which involves acquiring land for the construction of a new manufacturing plant and investing in machineries to improve capacity and production efficiency,” said its group managing director Chaw Kam Shiang.
The proceeds from the exercise will also be utilised for working capital, repayment of bank borrowings and to defray the listing expenses.
The expansion is expected to further strengthen the Johor-based label and printing company to capture the demand growth of the local industry.
According to a market report by Protégé Associates, the sector is expected to grow to RM8.11 billion in 2023 from RM5.46 billion in 2018.
Aside from the printing of labels, stickers and customised converting services, the group is also an authorised distributor for 3M and Henkel products.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the listing exercise.
Source: The Sun Daily