Feytech inks underwriting deal with TA Securities, AmInvestment Bank
KUALA LUMPUR: Feytech Holdings Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd and AmInvestment Bank Bhd for the company's initial pulic offering (IPO) on the Main Market of Bursa Malaysia.

In a statement, the automotive cover and seat manufacturer said its IPO entails a public issue of 143.32 million new shares and an offer for sale of 109.62 million existing shares.

Of the public issue shares, 42.16 million will be made available to the Malaysian public via balloting, 25.3 million will be allocated to eligible directors, employees and persons who have contributed to the success of Feytech Group, while the remaining 75.87 million shares will be allocated by way of private placement to selected investors.

Meanwhile, out of the 109.62 million existing ordinary shares offered for sale, 105.4 million will be allocated by way of private placement for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, while 4.22 million shares will be allocated by way of private placement to selected investors.

Pursuant to the underwriting agreement, the joint underwriters will underwrite a total of 67.46 million public issue Shares, representing the portion allocated to the Malaysian public and pink form allocations.

Feytech said the proceeds of 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 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," it said.

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, Kulim, 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.

Feytech Group will also utilise part of the IPO proceeds to purchase new machineries which include 75 sewing machines, an automated leather cutting machine and a patterning machine as well as purchase of materials and supplies and general working capital.

"The signing of the underwriting agreement with TA Securities and AmInvestment Bank marks a significant milestone towards our listing on the Main Market of Bursa Securities.

"The IPO proceeds will assist in the group’s expansion locally where we hope to grow and expand our services to our existing and target customers within the region," said Feytech executive director-cum-CEO Connie Go.
Markets,Feytech,IPO,underwriting,TA Securities,AmInvestment Bank
KUALA LUMPUR: Feytech Holdings Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd and AmInvestment Bank Bhd for the company's initial pulic offering (IPO) on the Main Market of Bursa Malaysia.