WTEC GROUP BERHAD MAKES SUCCESSFUL DEBUT ON THE ACE MARKET
Kuala Lumpur, 29 April 2025 – Manufacturer of foam and non-foam products, WTEC Group Berhad (“WTEC Group” or the “Company”), has successfully debuted on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The stock is categorised under the Industrial Products & Services sector and carries the stock name of WTEC, with a stock code of 0352.
At the opening bell, WTEC Group’s share price opened at its issue price of 25 sen, with an opening volume of 1.8 million shares.
Group Managing Director of WTEC Group, Mr. Tan Kok Kheng (陈国庆) said, “Our listing on the ACE Market of Bursa Securities today is part of a larger journey to further strengthen WTEC Group’s foundation and position the Company for its next phase of growth. This achievement reflects the collective efforts of our team and the continued trust placed in our long-term potential by our customers.”
“Fuelled by the funds raised from our IPO exercise, we will enhance and streamline our operations, particularly through the acquisition of a new ready-built manufacturing facility. This will allow us to consolidate operations currently carried out across multiple sites and to invest in additional machinery and equipment, which is a necessary step toward improving our production capacity and operational efficiency in a constantly evolving market.”
“Looking ahead, despite the prevailing uncertainties, we continue to see steady opportunities in the industries we serve. With a clear strategy, a capable team, and a strong foundation, we are well-positioned not only to support the industries and customers we serve, but also to grow alongside them in a steady and sustainable manner in the years to come.”
Out of the RM22.5 million raised from the IPO, RM9.4 million (41.8%) has been allocated for the acquisition and renovation of a new factory. RM3.0 million (13.3%) is earmarked for the purchase of new machinery and equipment, while RM5.1 million (22.7%) will be used as working capital for among others, purchases of inventory. An additional RM1.0 million (4.4%) is set aside for sales and marketing expenses, and the remaining RM4.0 million (17.7%) will be utilised for the defrayment of listing expenses.
On the financial front, WTEC Group’s revenue grew from RM43.1 million in the financial year ended 31 December 2021 to RM52.0 million in the financial year ended 31 December 2024. Over the same period, profit after tax rose from RM3.5 million to RM8.2 million.
The automotive and electrical and electronics segments were the major revenue drivers, collectively accounting for approximately 69.90% of WTEC Group’s total revenue in the FYE 2024. This was supported by long-term relationships with leading industry players in both sectors.
Beyond Malaysia, the Company also exports to among others, Vietnam, Thailand, Australia, and other international markets, with sales to foreign markets contributing approximately 24.02% of the Company’s total revenue in FYE 2024.
As part of its dividend policy, WTEC Group aims to distribute a dividend of 30% of its annual audited net profit subject to profits recorded and excess of funds not required to be retained for working capital of the business.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.
