KUALA LUMPUR: HPMT Holdings Bhd is looking to raise RM42.3 million from its initial public offering (IPO) en route to its listing on the Main Market of Bursa Malaysia on June 12.
Managing director Khoo Seng Giap said the company expects to offer 116.6 million of HPMT’s shares with an offer price of 56 sen per share for the IPO.
Speaking to reporters at the launch of its prospectus here yesterday, he said of the 116.6 million shares, 16.4 million would be made available to the public and 8.3 million shares allocated to HPMT’s eligible directors and employees.
Meanwhile, 59 million shares would be allocated for institutional and selected investors and 32.9 million to Bumiputera investors approved by the Ministry of International Trade and Industry, said Khoo.
“From the total of RM42.3 million to be raised (from the IPO), RM34 million has been earmarked for the purchase of new machinery, while RM2.9 million will be used as working capital.
“With the new machinery, we will be able to increase production and be ready to meet any increase in demand for cutting tools,” he added.
He said the purchase of the new machinery would boost HPMT’s production capacity by over 40 percent to 212,600 pieces of cutting tools per month by end-2021, from 148,200 pieces per month as at end-2018.
HPMT is a manufacturer and distributor of cutting tools and also trades in third-party cutting tools, supporting equipment and accessories for metalworking, as well as providing physical vapour deposition coating services.
Khoo said the company currently distributes to more than 30 countries, mainly in Europe and Asia, under its own brand and the private label of distributors.
“According to the Independent Market Researcher Report prepared by Protégé Associates Sdn Bhd, HPMT has an export market share of about 23.6 percent.
“This is based on the company’s export revenue of RM68.3 million in the financial year 2018, making it among the prominent cutting tools manufacturers in Malaysia. –Bernama
