By PRIYA VASU

HPP Holdings Bhd is advancing closer to become a public-listed entity with the launch of its prospectus in conjunction with the company’s proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.

The offset packaging printing specialist is offering 19.42 million shares to the public priced at 36 sen a share and the offering will see it raise RM31.9 million in proceeds.

At the offer price, HPP will have a market valuation of RM139.8 million

Of the total proceeds raised, RM13 million will be utilised towards capital expenditure such as acquisition of printing machines, RM7.8 million for repayment of borrowings, RM5.2 million to be used as working capital and RM2 million set aside for sales and marketing expenses.

The remaining proceeds of RM3.9 million will be for defrayment of IPO expenses, according to a release from the company yesterday.

The IPO applications will close on Jan 7, 2021 and the listing is targeted on Jan 20, 2021.

HPP and its subsidiaries (the Hayan Group) specialise in full-colour offset printing and production of paper-based packaging across various industries. Hayan Group Ltd also produces and trades rigid boxes.

Its clients span across key industries such as electrical and electronics, food and beverages, sheath contraceptive and pharmaceuticals.

The group’s expertise and presence in the high-end packaging and printing market are backed by its long-term relationship with leading brands.

“We have the capability to provide comprehensive printing solutions for paper-based packaging, which include corrugated and non-corrugated packaging.

“The group also invested in relevant infrastructure to cater for the growing demand of both standard and large-format packaging printing,” said group MD Kok Hon Seng.

The IPO comprises a total of 108.67 million shares wherein 19.42 million shares will be made available to the public, 30 million shares will be set aside for eligible directors, employees and business associates, 19.83 million shares will be offered via private placement to selected investors and the remaining 39.42 million shares for Bumiputera investors approved by the Ministry of International Trade and Industry.

Affin Hwang Investment Bank Bhd is the principal advisor, sponsor, sole underwriter and sole placement agent for HPP’s IPO.