MTAG seeks listing to build new manufacturing plant
- 1st March 2019
- Posted by: webmaster
- Category: News & Events
KUALA LUMPUR (March 1): MTAG Group Bhd, which is involved in the printing of labels, stickers and distribution of industrial tape and adhesive products, is seeking a listing on the ACE Market of Bursa Malaysia to raise funds for the construction of a new manufacturing plant in Johor Baru.
The group intends to buy a piece of land of about 10 acres in Senai or Tebrau, on which the new manufacturing plant housing its corporate office, production facility and warehouse will be constructed.
“We also intend to acquire 11 new machineries to improve our annual production capacity and efficiency for our printing of labels and stickers and customised converting services,” MTAG said in its draft prospectus filed with the Securities Commission Malaysia.
The initial public offering (IPO) entails the issuance of up to 136.32 million shares, representing 20% of the group’s enlarged share capital.
Under the public issue, there will be 34.08 million shares, representing 5% of its enlarged share capital, made available, while another 34.08 million shares will be reserved for the group’s directors and eligible employees. Another 68.16 million shares representing 10% of the group’s enlarged share capital will be reserved for Bumiputera investors.
Additionally, there will also be an offer for sale of 68.16 million shares, representing 10% of the enlarged share capital at its IPO price, which will be undertaken by way of private placement to selected investors.
The company’s promoters and selling shareholders are Chaw Kam Shiang, who holds a 63.1% direct stake, Lau Cher Liang with 27.1% and Ang Yam Fung with 8.7%. Their stakes will be reduced to 50.5%, 16.7% and 2% respectively after the listing exercise.
Besides using the total proceeds for the acquisition and construction of the manufacturing plant, it will also be used for capital expenditure, repayment of bank borrowings, working capital and estimated listing expenses.
M&A Securities Sdn Bhd is the principal adviser and underwriter for the retail offering and placement agent for the institutional offering in relation to MTAG’s IPO.
by Syahirah Syed Jaafar
The Edge Markets