Feytech inks IPO deal with TA Securities, AmInvestment Bank
KUALA LUMPUR: Feytech Holdings Bhd (Feytech) has entered into an underwriting agreement with TA Securities Holdings Bhd (TA Securities) and AmInvestment Bank Bhd (AmInvestment Bank) for the company’s initial public offering (IPO) on the Main Market of Bursa Malaysia.
Feytech and its subsidiaries (Feytech Group) are principally an automotive cover manufacturer and automotive seat manufacturer based in Malaysia.
Feytech Group mainly manufacture automotive covers and seats for the original equipment manufacturer (OEM) market segment.
Customers in the OEM market segment comprises automotive vehicle OEMs such as Mazda Malaysia (for Mazda 3, CX-5, CX8 and CX-30 car models) and Kia Malaysia (for Kia Carnival and
Sorento car models), as well as Tier 1 automotive seat and/or interior part manufacturers which serve automotive vehicle OEMs for brands such as local OEM, Mazda and Hyundai.
Feytech Group also manufacture automotive covers for the pre-delivery inspection and replacement equipment manufacturer market segments which comprise automotive distributors, car owners, used car dealers, importers, automotive dealers, car accessory retailers and automotive cover installers.
The IPO entails a public issue of 143.32 million new ordinary shares and an offer for sale of 109.61 million existing shares.
Proceeds from the IPO will be utilised to part finance the acquisition of land and the construction of a new corporate office with manufacturing plant and warehouse in Klang Valley with an approximately build-up area of 85,000 square feet (sq ft).
Upon the completion of the new corporate office with manufacturing plant and warehouse, Feytech Group intends to relocate all its existing operations in Petaling Jaya to this new corporate office with manufacturing plant and warehouse.
In addition, part of the proceeds from the IPO will be used to construct a new manufacturing plant, warehouse, annex office building and staff hostel to be built on a part of a vacant industrial land in Pekan Sungai Karangan, Kedah with a total estimated built-up area of 84,000 sq ft.
The total manufacturing space and storage space for Feytech Group’s manufacturing of automotive seats is expected to increase by approximately 55,000 sq ft upon the completion of the construction of Kulim Plant 2.