DS Sigma plans to raise RM50.2m from IPO

DS SIGMA Holdings Bhd, en route to a listing on the ACE Market of Bursa Malaysia, aims to raise RM50.15 million through its IPO exercise.

The IPO exercise of a packaging product provide involves the issuance of 91.18 million new ordinary shares at an issue price of 55 sen per share.

“DS Sigma will utilise 34.30% of the RM50.15 million to be raised to expand its operational facilities and 31.91% for the purchase of new machinery and equipment.

“Another 2.27% will be channelled towards the establishment of a packaging design and innovation centre while 11.96% will be utilised for the repayment of bank borrowings. 10.79% will be for working capital while the remaining 8.77% will be allocated for listing related expenses,” DS Sigma said in a statement.

Applications for the public issue are open and will close on Dec 21, at 5pm.

MD Lucille Teoh Soo Lien said for two decades, it had evolved from a product-centric supplier to a supply chain packaging solutionist.

“Following our listing on the ACE Market, we will have more valued opportunities to grow this market share as DS Sigma only accounts for 2.5% of the Malaysian market according to the industry overview report prepared by the independent market researcher.

“Through this IPO exercise, DS Sigma intends to raise RM50.15 million whereby the bulk of the proceeds will be used on expanding our capabilities to capture more of this market share,” she added.

Public Investment Bank Bhd is the principal advisor, sponsor, sole underwriter and sole placement agent for the IPO exercise. — TMR