Life Water, MIDF Investment ink underwriting deal for IPO

The firm specialises in the production and distribution of drinking water and carbonated beverages, primarily serving Sabah market 

LIFE Water Bhd, a local beverage manufacturer, entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Investment) on Oct 1 in preparation for the company’s IPO on the Main Market of the local bourse. 

The IPO involves a public issue of 97.56 million new ordinary shares and an offer for sale of 28.39 million existing shares. 

Of the 97.56 million new shares, 23.66 million will be made available for application by the Malaysian public, 14.19 million for eligible directors, employees and contributors to the company’s success, 560,000 via private placement to selected investors and 59.15 million via private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry. 

According to the underwriting agreement, MIDF Investment will underwrite 37.85 million shares, covering the portions allocated to the Malaysian public and eligible directors, employees and contributors. 

Headquartered in Sandakan, Life Water specialises in the production and distribution of drinking water and carbonated beverages, primarily serving the Sabah market. 

The company’s operations are supported by in-house plastic packaging production, enhancing overall efficiency. 

Life Water operates production facilities in Sandakan and Kota Kinabalu, with distribution centres in Sandakan, Kota Kinabalu and Lahad Datu to ensure efficient delivery across the region. 

Life Water’s home-grown brands include K2, Sasa and Sabah Water for drinking water, as well as 2more and TRITONiC for carbonated drinks. 

Additionally, the company provides contract manufacturing services for private-label drinking water for petrol stations, hypermarkets, wholesalers and hotels. 

Proceeds from the IPO will be allocated for business expansion, working capital and listing expenses. Planned initiatives include acquiring a new water production line for Sandakan Sibuga Plant 1; constructing Sandakan Sibuga Plant 2, which will feature a 50,000 sq ft facility with both factory and office spaces; and enhancing plastic packaging facilities in Kota Kinabalu.

Furthermore, the company plans to establish a second distribution centre in Sandakan with a depot for delivery trucks, as the current warehousing space is fully utilised.

“The proceeds from the IPO will enable us to accelerate our expansion plans, including upgrading our production capabilities and enhancing our distribution network, all while supporting our growing operations across Sabah,” said Life Water co-founder and MD Liaw Hen Kong in a statement. 

“This marks an exciting chapter for Life Water as we strengthen our position in the beverage industry and continue to provide quality beverages at affordable prices to our customers,” he added. 

MIDF Investment serves as the principal advisor, underwriter and placement agent for Life Water’s IPO. TMR


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