Unique Fire to raise RM21.8m from IPO for expansion

The group is scheduled to be listed on the ACE Market of Bursa Malaysia on Aug 5, 2022

by S BIRRUNTHA / pic source uniquefire.com

UNIQUE Fire Holdings Bhd targets to raise RM21.78 million from its IPO to expand its manufacturing, operational capabilities and geographical coverage.

The group is scheduled to be listed on the ACE Market of Bursa Malaysia on Aug 5, 2022.

Of the IPO proceeds, the group said RM2.5 million has been earmarked for the expansion of manufacturing facilities and RM6 million for expansion of geographical coverage.

Another RM5.3 million and RM4.58 million will be set aside for expansion of operational capabilities and working capital respectively.

The remaining RM3.4 million will be utilised to fund the listing expenses.

Meanwhile, the group’s IPO entails a public issue of 83.75 million new shares, as well as an offer for sale of 30 million existing shares at an issue and offer price of 26 sen per share.

For the public issuance, 20 million shares will be made available to the Malaysian public, and eight million shares to the group’s eligible directors, employees and persons who have contributed to the success of Unique Fire.

Another 5.75 million shares will be made available by way of private placement to selected investors, and the remaining 50 million shares will be made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

Unique Fire’s market capitalisation arrives at RM104 million upon its listing on the ACE Market, based on its enlarged share capital of 400 million shares coupled with the issue price of 26 sen per share.

Commenting on this, MD Liew Sen Hoi said the listing exercise will help to elevate the group’s profile, enhance its credibility, as well as visibility among the public, and fund the business future plans.  

He added that the group’s existing cylinder manufacturing line has been experiencing high utilisation rates and, nonetheless, we continue to strategise and strive to cater to the unrelenting demand for fire protection systems which are critical mandatory products that are required in the built environment.

“Based on the research conducted by Vital Factor Consulting, the number of calls received by Bomba grew at a compound annual growth rate of 7.8% between 2016 and 2020.  

“To meet this demand dependency, we will be expanding our manufacturing facilities by installing two new hand portable dry chemical fire extinguisher cylinder manufacturing lines.  

“Upon completion, this will boost our current production capacity of 210,000 units by over 220%,” he said during the group’s IPO prospectus launch and media conference in Kuala Lumpur today.

On top of that, Liew said Unique Fire is also expanding its operational capabilities by increasing its storage capacity, implementing a warehouse management system, a digital fire extinguisher identification data system, as well as enhancing its IT system to increase the overall efficiency of the group’s operations.  

He noted that these plans are expected to be implemented within three years from its listing.

“Being listed on Bursa Securities Malaysia Bhd is a major milestone for the group since the commencement of our operations as a distributor in 1997.  

“With our long track records and strong business fundamentals, we are optimistic that we will be able to deliver sustainable growth in the coming years,” he said.

On the outlook, ED Datuk Marcus Liew said the group is looking forward to penetrating the export markets, as it is gradually tapping into the international markets right now.

Liew said the strategies include compliance with stringent British Standards which will enable Unique Fire to export to most commonwealth countries.

He also added that the group was not affected by the minimum wage policy as its workers are paid above the minimum wage.

Liew noted that the group is indirectly affected by the rising steel price, in which it was able to pass down some of the increased costs to its customers.

“Nevertheless, we are confident that we will go back to the pre-pandemic period performance with our strong business fundamentals,” he noted.

Alliance Islamic Bank Bhd is the principal advisor, sponsor, sole underwriter and placement agent for Unique Fire’s IPO exercise.