Plytec targets RM37mil from ACE Market listing

KUALA LUMPUR: Plytec Holding Bhd, en route to a listing on the ACE Market of Bursa Malaysia, aims to raise RM37.1mil from its initial public offering (IPO).

The company said that through the IPO, it expects to have an enlarged issued share capital of RM212.12mil comprising 606 million shares priced at 35 sen per share.

Plytec is involved in construction engineering solutions, services, trading and distribution of building materials.

In conjunction with its listing, 30.30 million new shares will be made available for application by the Malaysian public.

The remaining 75.76 million new shares will be made available via private placement to bumiputra investors approved by the Investment, Trade and Industry Ministry.

Group managing director Yang Kian Lock said with RM7.8mil (21.01%) of the proceeds, the company plans to strengthen its position as a construction method engineering (CME) solutions provider by increasing capacity for temporary work equipment.

“We look forward to venturing upstream into building manufacturing facilities for temporary works equipment and consolidating our support facilities on the prime Olak Lempit land in Banting, Selangor, which occupies over 801,000 sq ft.”

He said this at the company’s prospectus launch yesterday.

From the IPO proceeds, RM9mil (24.2%) will be utilised for repayment of borrowings, RM8mil (21.6%) for capital expenditure and RM6.3mil (17%) for working capital.

The remaining RM6mil (16.2%) of the proceeds will be used for estimated listing expenses and purchases of software systems and hardware.

In the financial year ended Dec 31, 2022 (FY22), Plytec reported gross profit of RM42.29mil from four segments – CME, trading and distribution of building materials, digital design and engineering (DDE) solutions and prefabricated construction solutions.

Chief operating officer Louis Tay Chee Siong said the CME segment accounted for 67.38% of gross profit in FY22 and will be expanded in Asean by year-end.

“For CME, our plan this year is to expand in Asean and we have been doing exhibitions in Vietnam, Indonesia and next the Philippines, whereas we are expanding worldwide for the DDE solutions.

“Currently we are doing the service to East Europe,” he said.

Applications for the IPO will close on Oct 31, 2023. The group is scheduled to be listed on Nov 15, 2023.

KAF Investment Bank Bhd will be the principal adviser, sponsor, underwriter and placement agent for this IPO exercise while Kenanga Investment Bank Bhd will be the joint underwriter and joint placement agent. — BK