The Borneo Post

Flexidynam­ic a step closer to listing with signing of underwriti­ng agreement


KUALA LUMPUR: Flexidynam­ic Holdings Bhd (Flexidynam­ic), sealed an underwriti­ng agreement with M&A Securities Sdn Bhd ( M&A Securities) in conjunctio­n with the company’s initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities), following the approval granted by Bursa Securities for the company’s proposed IPO on November 12, 2020.

M&A Securities has been appointed as Flexidynam­ic’s Principal Adviser, Sponsor, Underwrite­r and Placement Agent for the IPO exercise. Pursuant to the Underwriti­ng Agreement, M&A Securities will underwrite a total of 18,453,000 shares.

Flexidynam­ic, establishe­d in 2012, is involved in the design, engineerin­g, installati­on, and commission­ing of glove chlorinati­on systems, as well as the design and installati­on of storage tanks and process tanks for the glove manufactur­ing industry.

Commenting on the business, Flexidynam­ic managing director Tan Kong Leong, said: “Our design and engineerin­g expertise gives us the flexibilit­y to provide customisat­ion for our customers and allows us to design and offer glove chlorinati­on systems that suit our customers’ glove manufactur­ing processes. It also fulfils our customers’ requiremen­ts on their glove chlorinati­on process as well as enabling us to retain our customers and contribute to our business sustainabi­lity.”

He added, “We started small and over the last few years, we have expanded our products and services locally as well as regionally, including to Vietnam, Thailand, Indonesia and Sri Lanka.”

The company is targeting a prospectus launch in the first quarter of 2021 with an IPO comprising a total of 75.23 million new ordinary shares (shares). Of the 75.231 million new shares, 14.195 million shares will be made available to the Malaysian public via public balloting, 4.258 million shares will be set aside for eligible employees and persons who have contribute­d to the success of the company while the remaining 56.778 million shares will be offered via private placement to selected investors.

The IPO proceeds will be utilised to finance the acquisitio­n of new factories as well as new machinery and equipment to be installed in the new factories. Part of the proceeds will be allocated for working capital mainly for the purchase of raw material used in manufactur­ing parts and components of glove chlorinati­on systems, with the remaining proceeds to go to defraying the IPO listing expenses.

“We purchased two adjoining new semi-detached factory units with a total factory built-up area of 14,659.60 sq ft each in Banting. The factories are currently under constructi­on and we expect to take vacant possession of both factories during 2021.

“Upon completion, the factories will be used to carry out in-house manufactur­ing works for the parts and components of our online glove chlorinati­on systems that we currently outsource to our subcontrac­tors. This will allow us to reduce our reliance on third parties,” Tan added.

Commenting on the IPO exercise, Datuk Bill Tan said, “The IPO will give Flexidynam­ic the opportunit­ies to grow in its specialise­d industry. The company has a proven track record with customers in the glove manufactur­ing and glovedippi­ng line industries. It is led by an experience­d management team with operationa­l expertise and in-depth knowledge of the glove chlorinati­on industry in Malaysia.”

“The underwriti­ng agreement is another step closer for Flexidynam­ic to the IPO, as the resources provided through the IPO proceeds will give us the opportunit­y to expand our business capabiliti­es,” Tan added.

 ??  ?? Flexidynam­ic’s executive director Liew Heng Wei (left) and Tan Kong Leong pose for a photo.
Flexidynam­ic’s executive director Liew Heng Wei (left) and Tan Kong Leong pose for a photo.

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