Manforce IPO aims to raise RM8.6m

By KEVIN WONG / Pic By ISMAIL CHE RUS

Manforce Group Bhd targets to raise RM8.6 million from its initial public offering (IPO) on the Leading Entrepreneur Accelerator Platform Market of Bursa Malaysia for its working capital requirements.

The IPO entails a proposed placement of 47.997 million shares at an indicative issue price of 18 sen per share.

Manforce MD Datuk Paul Wong (picture) said 87.3% or RM7.5 million from RM8.6 million raised from the listing scheduled for December will be utilised for the foreign workers management services provider’s working capital.

“The industry we are in is constantly facing a supply-demand mismatch, where the demand is greater than existing supply. This is why we have allocated around RM7.16 million to hire and/or manage up to 1,800 additional foreign workers, from our current 3,355 foreign workers.

“The additional foreign workers will be placed in manufacturing and service sectors, particularly in cleaning,” he said at the launch of Manforce’s prospectus yesterday in Petaling Jaya.

He added that the firm is planning to explore opportunities to provide foreign workers to new sectors, such as the automotive sector, next year.

The firm supplies foreign workers from Nepal, Bangladesh, Myanmar, Indonesia and Vietnam nationwide.

When asked about the implementation of the new minimum wage of RM1,050, Wong said it will not have any effect on Manforce’s business.

“The impact of the minimum wage rise is not significant as the government had raised the minimum wage before and we are prepared for it,” he said.

On the abolishment of recruiting foreign workers via agents or companies, Wong said Manforce will not be affected by it.

“It will have zero impact on us as it would mainly affect outsourcing companies. Our business concept is managing our clients’ foreign workers.”