WTEC underwriting deal with Alliance Islamic Bank

WTEC Group Bhd has entered into an underwriting agreement with Alliance Islamic Bank Bhd in preparation for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia, which is scheduled for listing by April 2025.

Through its group of subsidiaries, WTEC is engaged in the manufacturing and trading of both foam and non-foam products, catering to a wide range of industries including automotive, electrical and electronics, construction, medical, and personal protective equipment, among others.

According to a recent statement, the IPO will involve the issuance of 90.2 million new ordinary shares, representing 18.8% of WTEC’s enlarged share capital. In addition, there will be an offer for sale of 43.2 million existing shares, accounting for 9% of the enlarged share capital.

From the 90.2 million new shares to be issued:

• 24 million shares will be offered to the Malaysian public via balloting;

• 9.6 million shares will be allocated to eligible directors, employees, and contributors to the Group’s success under the pink form;

• The remaining 56.6 million shares will be privately placed to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).

Meanwhile, of the 43.2 million shares offered for sale:

• 39.8 million shares will be placed with selected investors;

• 3.4 million shares will be allocated to MITI-approved Bumiputera investors.