ACE-MARKET BOUND WTEC GROUP BERHAD’S IPO OVERSUBSCRIBED BY 1.61 TIMES
Kuala Lumpur, 17 April 2025 – Manufacturer of foam and non-foam products, WTEC Group Berhad (“WTEC Group” or the “Company”), has been oversubscribed by 1.61 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
WTEC Group Berhad, through its subsidiaries (collectively known as the “Group”) manufactures and trades foam and non-foam products. Supported by more than two decades of industry experience, the Group’s offerings address the needs of multiple sectors, such as automotive, electrical and electronics (“E&E”), medical and personal protective equipment, and construction industries. While the Group leverages on its versatile range of machinery to provide customised solutions for diverse customer needs, its strong reputation and longstanding client relationships continue to attract new customers and supports growth locally and internationally, including Vietnam, Thailand, Australia and other international markets.
WTEC Group’s initial public offering (“IPO”) entails a public issue of 90.2 million new ordinary shares (“Issue Shares”) at an issue price of RM0.25 per share. This represents 18.8% of the enlarged issued share capital, with approximately RM22.5 million expected to be raised. Meanwhile, there is an offer for sale of 43.2 million existing shares (“Offer Shares”) representing 9.0% of the enlarged issued share capital made available, by way of private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”).
In respect of the 24.0 million Issue Shares allocated to the Malaysian public, WTEC Group has received a total of 2,055 applications for 62,688,800 Issue Shares with a value of approximately RM15.67 million, representing an overall oversubscription rate of 1.61 times.
The 9.6 million Issue Shares made available for application by the eligible directors, employees, and persons who have contributed to the success of the Group have been fully subscribed.
Meanwhile, the private placement of 56.6 million Issue Shares and 3.4 million Offer Shares to Bumiputera investors approved by the MITI, along with the private placement of 39.8 million Offer Shares to selected investors, are also fully taken up.
Notices of allotment will be posted to all successful applicants by 24 April 2025.
Group Managing Director of WTEC Group, Mr. Tan Kok Kheng (陈国庆) said, “We are encouraged by the positive response as it reflects the market’s healthy interest and confidence in our business model and growth prospects.”
“Moving forward, we will remain focused on executing our strategic plans. A significant portion of our IPO proceeds will be allocated towards the acquisition of a new manufacturing facility, as well as towards the purchase of additional machinery and equipment. These initiatives are aimed at enhancing our existing manufacturing capabilities and improving our overall operational efficiency, allowing us to better serve our customers who span across a wide range of sectors and markets.”
“While external challenges may persist, we are committed to navigating them with agility and resilience, ensuring that we remain on track in delivering sustainable growth.”
WTEC Group is scheduled to be listed on the ACE Market of Bursa Securities on 29 April 2025. Upon listing, WTEC Group will have a market capitalisation of RM120.0 million based on the issue price of RM0.25 per share and the enlarged issued share capital of 480.0 million shares.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.
