PETALING JAYA: Flexidynamic Holdings Bhd has launched its prospectus ahead of its listing on Bursa Malaysia’s ACE Market involving the public issuance of 75.23 million shares at an issue price of 20 per share to raise an estimated RM15.05 million.
The company, which primarily deals in chlorination systems as well as storage and processing tanks for gloves will offer 14.2 million shares available to the Malaysian public, 4.26 million shares to eligible employees and persons, as well as the private placement of 56.78 million shares to selected investors.
Of the RM15.05 million, the group expects to raise from the initial public offering (IPO), it has allocated RM6.38 million towards the repayment of bank borrowings for its acquisition of new factories, RM420,000 will put towards the renovation of those factories and RM1.63 million has been earmarked for the purchase of new machinery and equipment.
In addition, it stated that RM3.62 million of the proceeds will be used as working capital, while the remaining RM3 million will be used to defray the estimated listing expenses.
Flexidynamic’s managing director Tan Kong Leong remarked that it is ready for the next stage of growth as it expects demand for rubber gloves to stay high in the foreseeable future, due to the heightened awareness on the role of protective gears in curbing the spread of diseases such as Covid-19.
He revealed that part of the IPO proceeds will be used to expand its manufacturing facility in Banting as well as reducing the reliance on third-party subcontractors for crucial parts and components of its on-line glove chlorination system.
“We now have one factory and will be taking vacant possession of two factories adjacent to our current factory that are currently being renovated.
“These new factories will be used to carry out in-house manufacturing works for the parts and components of our on-line glove chlorination systems that we currently outsource to our subcontractors,” Tan added.
For the exercise, the group has appointed M&A Securities Sdn Bhd as its principal adviser, sole placement agent, sole underwriter and sponsor.
