DPI signs underwriting agreement with AffinHwang IB for IPO

KUALA LUMPUR: Aerosol paints producer DPI Holdings Bhd (DPI) has executed an underwriting agreement with Affin Hwang Investment Bank Bhd – its principal adviser, ponsor, underwriter and placement agent – for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

DPI’s IPO entails a public issue of 126.5 million new shares, representing 26 per cent of the Group’s enlarged share capital. Of the 126.5 million shares, 24.3 million shares will be for application by the Malaysian public and 14.1 million shares for application by eligible directors, employees and persons who have contributed to the success of the Group.

Meanwhile, 39.4 million shares are allocated for private placement to identified investors and 48.7 million shares for private placement to Bumiputera investors identified by the Ministry of International Trade and Industry.

Barring unforeseen circumstances, DPI targets to be listed in January 2019.

At the signing ceremony of the underwriting, DPI’s executive chairman and managing director Peter Chai said: “Having built our in-house brands from scratch since 1982, we are definitely proud of our successes thus far: amassing a 300colour product range, developing a broad channel of approximately 700 customers in Malaysia and counting local and international brands as our private label customers.

“With the underwriting agreement now completed, we are now heading closer towards our IPO which will propel us into the next stage of growth.”

Also present at the ceremony was DPI deputy managing director Adam Chai.

Affin Hwang Investment Bank was represented by group managing director, Datuk Maimoonah Hussain, who noted that DPI has an experienced management team with an excellent track record in the aerosol paint industry for more than 30 years.