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Wentel Engineering to build new plant from IPO money

Wentel Engineering to build new plant from IPO money

28 Dec 2023

Wentel Engineering Holdings Bhd plans to build a new manufacturing plant largely from the proceeds of its initial public offering (IPO).  

The company today signed an underwriting agreement with TA Securities Holdings Bhd for its IPO on Bursa Malaysia’s ACE Market. 

The IPO entails a public issue of 273.2 million new shares and an offer for sale of 46 million existing shares.  

Of the 273.2 million public issue shares, 57.5 million will be made available to the Malaysian public via balloting, 33 million for eligible directors, employees and other persons who have contributed to the success of Wentel Engineering and its subsidiaries, and 38.95 million by way of private placement to selected investors. 

The remaining 143.75 million are allocated for Bumiputera investors approved by Ministry of Investment, Trade and Industry.

TA Securities will underwrite a total of 57.5 million public issue shares, being the portion made available to the public via balloting. 

“Proceeds from the IPO will be utilised to part finance the construction of two blocks of single-storey factory (with double-storey office) and two blocks of workers’ hostel (new manufacturing plant).  

“The new manufacturing plant is expected to provide the Wentel Engineering with net additional built-up area of approximately 254,381 sq ft for its operations and workers’ accommodation.”

The company will also utilise the IPO proceeds to part finance the purchase of new machinery and equipment for the new manufacturing plant. 

Wentel Engineering executive director Wong Chun Wei said the underwriting agreement is a milestone for the company as it brings it one step closer to being a listed entity. 

“The IPO will provide funding for our expansion and enable the public to participate in our group’s future growth. 

“Our focus is to establish the new manufacturing plant as well as purchase new machinery and equipment to address opportunities in Malaysia and Singapore targeting existing and new customers. 

“Meanwhile we will continue to leverage on our core competencies and strengths in the fabrication of semi-finished metal products, fabrication of metal parts and assembly of finished products to further grow our business moving forward,” he added. 

Wentel Engineering is principally involved in the fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products for the manufacturers of several industries such as security screening equipment, computer numerical control (CNC) machines, semiconductor manufacturing equipment, medical diagnostics equipment, passenger coaches and industrial 3D printers. 

TA Securities, besides being the sole underwriter of Wentel Engineering’s IPO, is also the principal adviser, sponsor and placement agent for the exercise.

Source: NST