BWYS to build new sheet metal factory in Penang
GEORGE TOWN: ACE Market-bound BWYS Group Bhd will use the bulk of its initial public offering (IPO) proceeds to set up a new factory in Penang and expand its sheet metal business.

Group managing director Kang Beng Hai said the new plant, currently under construction near the existing facility in Sungai Bakap, would overcome Penang’s space limitation and accommodate an additional production line.

“Upon completion, our warehouse capacity will increase by more than 11-fold from 13,183 sq ft to 150,231 sq ft, allowing us to store more raw materials and finished goods.

“We will add new machinery and equipment, including a new automated powder coating line, as well as roll forming machines and related equipment to improve our manufacturing capabilities for roof trusses and industrial racking systems,” Kang said.

He said that to capture new growth opportunities in the roofing market, the group would expand its product range to include polyurethane foam sandwich panels, offering insulation from heat and noise.

According to Kang, BWYS will also implement information and communications technology systems to digitalise its production and inventory management processes and improve its production workflow.

BWYS has market access to the United States and other countries, including Singapore, Indonesia, Australia, Bangladesh, the Philippines, the United Arab Emirates, Brunei and Kuwait.

The group plans to expand its geographical reach to South-East Asia, the Middle East and South America.

“Looking ahead, BWYS is poised to capitalise on Malaysia’s economic growth, notably in the construction sector, which will lead to increased demand for roofing sheets, trusses, welded pipes and scaffoldings.

“Furthermore, anticipated growth in other key industries, such as manufacturing and wholesale and retail trade, strengthens this positive outlook.

“The New Industrial Master Plan 2030, supporting manufacturing and related service sectors, including the metal sector, will further drive demand for sheet metal products, aligning well with BWYS’s strategic growth initiatives,” Kang said.

Backed by a 25-year track record in the sheet metal products industry, BWYS has a strong market presence across Malaysia through its eight manufacturing facilities in Penang, Selangor, Johor, Kelantan, Sarawak and Sabah.

BWYS aims to raise RM56.4mil upon listing on the ACE Market on July 22.

The IPO involves issuing 256.3 million new ordinary shares, representing 25% of its enlarged share capital, and an offer to sell 100 million existing shares, or 9.8% of its enlarged share capital, through a private placement to selected investors.

From the 256.3 million shares, 51.3 million will be made available to the public, 61.5 million shares to its eligible directors, employees and persons who have contributed to BWYS’s success, and 128.2 million through private placement to approved bumiputra investors.

The remaining 15.4 million shares are reserved for private placement to selected investors. Based on 22 sen per share and its enlarged share base of 1,025.2 million shares, BWYS’ market capitalisation upon listing is approximately RM225.5mil.

On BWYS’s financial performance, the group’s revenue grew from RM130.9mil in the financial year ended Dec 31, 2020 (FY20) to RM246.1mil in FY23, representing a three-year 23.4% compound annual growth rate (CAGR).

Meanwhile, profit after tax also grew from RM3.4mil in FY20 to RM17.6mil in FY23, translating into a three-year 73% CAGR. In FY23, the sheet metal products segment contributed 73% to the group’s revenue, followed by the revenue from the scaffolding segment at 24.9% and the group’s steel product business at 2.1%.
Corporate News,BWYSIPO,PenangFactory,SheetMetal,RoofingProducts,DigitalManufacturing,BWYSGrowth
ACE Market-bound BWYS Group Bhd will use the bulk of its initial public offering (IPO) proceeds to set up a new factory in Penang and expand its sheet metal business.