HPMT eyeing RM42.3m from IPO
KUALA LUMPUR: HPMT Holdings Bh, which is enroute for listing on Bursa Malaysia’s Main Market, is expected to raise RM42.3 million from its initial public offering (IPO).
The IPO entails a public issue of 116.6 million ordinary shares with an offer price of 56 sen per share.
Upon listing, HPMT’s market capitalisation is estimated to be RM184 million.
Managing director Khoo Seng Giap said RM34 million of the IPO proceeds would be used for the acquisition of new machineries while RM2.9 million would be for working capital.
“With the new machineries purchased using the proceeds raised (from the IPO), we will be able to increase our production quantity and ready to meet any increase in demand for our cutting tools,” he said at the launch of the company’s prospectus, here, yesterday.
The new machineries would increase HPMT’s production capacity by more than 40 per cent to 212,600 pieces of cutting tools monthly by end-2021 from 148,200 pieces as at December last year.
Khoo said the listing status would further enhance HPMT’s profile, corporate image, as well as increase awareness of its existence, giving higher exposure to potential customers across the globe.
Besides making and distributing cutting tools, HPMT also trades in third-party cutting tools, supporting equipment and accessories for metalworking, as well as provides physical vapor deposition coating services.
The company currently distributes products to more than 30 countries, mainly in Europe and Asia, under its own HPMT brand and its distributors’ private labels.
According to the independent market researcher report prepared by Protege Associates Sdn Bhd, HPMT had an export market share of about 23.6 per cent based on export revenue of RM68.3 million in the financial year 2018, making it among the prominent cuttingtool manufacturers in Malaysia.