Feytech inks underwriting agreement with TA Securities, AmInvestment Bank
Feytech Holdings Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd and AmInvestment Bank Bhd for its listing on the Main Market of Bursa Malaysia.
The automotive cover manufacturer and automotive seat manufacturer said proceeds from the initial public offering (IPO) would be used to partially finance the acquisition of land and the construction of a new corporate office with a manufacturing plant and warehouse in the Klang Valley.
Upon completion, Feytech intends to relocate its operations in Petaling Jaya to the new premises.
The company said proceeds from the IPO would also be used to construct a manufacturing plant, warehouse, annex office building, and staff hostel on an industrial land in Kulim, Kedah (Kulim Plant 2).
The total manufacturing and storage space for the group’s manufacturing of automotive seats is expected to increase by 55,000 sq ft upon the completion of Kulim Plant 2.
“Feytech will also use part of the IPO proceeds to purchase new machines, which include 75 sewing machines, an automated leather cutting machine and a patterning machine, as well as for materials, supplies and general working capital,” it added.
Feytech said the IPO entailed a public issue of 143.32 million new shares and an offer for sale of 109.62 million existing shares.
Pursuant to the underwriting agreement, the joint underwriters would underwrite a total of 67.46 million public issue shares, representing the portion allocated to the Malaysian public and pink form allocations, it said in a statement.
TA Securities is also the principal adviser, managing underwriter and joint placement agent for this exercise.
AmInvestment Bank is the joint underwriter and joint placement agent for Feytech’s IPO.