Plytec enters underwriting agreement

CONSTRUCTION engineering solutions and services provider Plytec Holding Bhd, set to debut on the ACE Market of Bursa Malaysia, has entered into an underwriting agreement involving three individual selling shareholders and two investment banks, KAF Investment Bank Bhd (KAF IB) and Kenanga Investment Bank Bhd (Kenanga IB), to underwrite 51.52 million shares.

These shares comprise 30.3 million issue shares available for Malaysian public application and 21.21 million offer shares held by Plytec group MD and CEO Yang Kian Lock, Low Teck Heng, and COO Louis Tay Chee Siong.

Plytec’s upcoming IPO encompasses a public issue of 106.06 million new shares, with 30.3 million for Malaysian public subscription and 75.75 million allocated for Bumiputera investors

through private placement. Additionally, there is an offer for

sale of 51.52 million existing shares, with 21.21 million designated for eligible directors, employees and contributors, and 30.3 million offered through private placement to selected investors.

Yang considers the underwriting agreement a significant milestone that brings the company closer to becoming a publicly traded entity, stating that their goal is to strengthen their position as a provider of construction method engineering and digital design engineering solutions.

Kenanga IB director Datuk Roslan Tik believes Plytec, backed by a strong management team, is poised for growth due to increasing demand for construction engineering solutions and services.

The IPO proceeds will primarily fund capital expenditure, debt repayment, construction projects, software and hardware purchases, working capital and listing expenses.

Originally known as Sudut Swasta Group, Plytec has expanded beyond its initial focus on distributing building materials, now offering construction engineering solutions aimed at improving construction efficiency and safety through industrialisation practices.

Additionally, the group is involved in trading and distributing core and general building materials.

Plytec is expected to be listed on Bursa Securities in the fourth quarter of 2023, with KAF IB serving as the principal advisor, sponsor, managing underwriter, joint underwriter and joint placement agent, and Kenanga IB as the joint underwriter and joint placement agent. TMR

  • This article first appeared in The Malaysian Reserve weekly print edition