By NUR HAZIQAH A MALEK

MOBILIA Holdings Bhd will list on the ACE Market with a public issue of 60 million shares at an issue price of 23 sen per share, giving it a market capitalisation of RM92 million.

Twenty million shares will be made available for the Malaysian public, 12 million allocated for eligible Mobilia employees and 28 million shares offered via private placement to selected investors, the furniture company stated in a prospectus launch yesterday.

Mobilia’s business development manager Ervin Quek said the IPO is expected to raise RM13.8 million in proceeds, of which RM5.8 million will be utilised for the construction of office, showroom and factory.

“Part of the proceeds from the IPO will also be utilised to expand our current manufacturing plant to support our long-term business growth and purchasing new types of machinery is also within our plan to increase automation in our manufacturing process.”

“The expansion of our factory which comprises two blocks of single-storey detached factory buildings are in full operation now,” he said.

The expansion is expected to beef up the company’s furniture production capacity and enables the company to take in more orders.

“This is also in line with our aim to develop at least 60 new designs of home furniture annually,” he said.

Of the proceeds, RM1.8 million will be utilised for the repayment of borrowings and RM1.9 million will be allocated for working capital.

A further RM3 million of the proceeds will be utilised to defray estimated listing expenses, whereas the remaining RM1.3 million of the proceeds will be allocated for the purchase of machinery.

The group’s indicative timeline plans for the IPO is closing on Feb 9, 2021, followed by balloting on Feb 11, and allotment on Feb 19 and listing on Feb 23.

Meanwhile, Kenangan Investment Bank Bhd group MD Datuk Chay Wai Leong said the furniture manufacturer’s exports figures are expected to increase with the listing exercise.

“With over a decade of experience and positive track record for exports of furniture in Asia, North America, Europe, Middle East, South America, Australasia and North Africa, this exercise will further accelerate Mobilia’s growth trajectory in these markets that they are already in and also enable them to expand into new markets,” he said.