by AUFA MARDHIAH /pic courtesy of LEFORM
LEFORM Bhd has signed an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Investment) on the group’s upcoming IPO debuts on the ACE Market of Bursa Securities in November this year.
The IPO exercise entails the issuance of 311 million new shares to the public — 21% of its enlarged share capital and an offer to sell 74.1 million of its existing shares (contributing 5% of the enlarged shares) — through a private placement to designated institutional and/or selected investors.
Out of the 311 million new shares, 74.1 million will be distributed to Malaysians via ballot, 29.6 million to eligible directors, employees and people who have helped the group succeed (Pink Form Allocations), 22.2 million will be distributed to chosen investors via private placement and the remaining 185.1 million shares will only be distributed to Bumiputera investors who have been approved by the Ministry of International Trade and Economic Affairs.
Leform MD Law Kok Thye (second from left) stated that the IPO exercise will expedite the group’s expansion plans and enable it to tap into the equity capital market, concurrently granting it the better financial flexibility to capitalise on future growth opportunities as it arises.
“Against the backdrop of the prospects of the construction industry, demand for steel products is expected to be stimulated alongside the growth of these end-user industries.
“Therefore, we have strategise initiatives to construct new facilities to cater for the anticipated increase in orders for steel pipes and flat steel products. The expansion of our storage space capacity, for example, will enable us to operate our types of machinery more efficiently. We will utilise a portion of the IPO proceeds to improve our working capital, equipping us with the ready capacity to scale up our operations and production output which will solidify our stature in the steel industry,” he said in a statement today.
Meanwhile, MIDF Investment CEO Datuk Dominic Silva (second from right) said: “The listing status sought will certainly elevate Leform’s credentials and reputation, building upon a business model that has proven resilient through various economic environments.
“Now, as Leform forges ahead, we look forward to working together with the team from Leform — to grow the company from strength to strength as a player in the steel industry,” Dominic added.
MIDF Investment will act as the principal advisor, sponsor, sole underwriter and sole placement agent for the IPO exercise.