Coraza signs IPO underwriting agreement with M&A Securities

KUALA LUMPUR: Integrated engineering supporting services provider Coraza Integrated Technology Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd following its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Bhd.

The IPO entails a public issue of 117.8 million new shares in Coraza, representing 27.5 per cent of the enlarged share capital, and an offer for sale of 21.4 million existing shares to selected investors by way of private placement.

Coraza managing director Lim Teik Hoe said the listing would allow the company to tap into the equity capital market to raise funds to accelerate the growth of its engineering support services business.

“The exercise will also further strengthen Coraza’s financial position as we embark on the next phase of our business expansion plans,” he said in a statement yesterday.

Coraza said proceeds from the IPO will mainly be used to part-finance the construction of a new factory adjacent to its current factory in Nibong Tebal, Penang and purchase new machinery over the next three years to improve its production capacity as well as service offerings.

Lim said the company has experienced a substantial continuous increment of orders across all market sectors, especially the semiconductor sector over the last two years.

“Hence, it is crucial for us to purchase new machinery to increase our capacity and improve our service offerings to meet the increasing demand from our customers,” he added. “To this end, we have purchased and commissioned machinery during the third quarter of 2021.

Moving forward, we will progressively acquire machinery over three years which will increase our capacity by a further 25.0 per cent.” Of the 117.8 million new shares, 21.4 million new shares will be made available to the Malaysian public via balloting, 21.4 million new shares for its eligible directors, employees and persons under pink form allocations, while the remaining 74.9 million new shares are earmarked for private placement to selected investors by way of private placement.

Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 42.8 million new shares made available to the Malaysian public and those under pink form allocations.