ACE Market-bond SFP Tech inks underwriting pact with Public Investment Bank

ACE Market-bond SFP Tech inks underwriting pact with Public Investment Bank
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KUALA LUMPUR (April 21): One-stop integrated engineering and automation solution provider SFP Tech Holdings Bhd, en route to list on the ACE Market of Bursa Malaysia, has inked an underwriting agreement with Public Investment Bank Bhd for its initial public offering (IPO) ahead of its prospectus launch in end-May.

In a statement on Thursday (April 21), SFP Tech said its IPO exercise involves a public issue of 207.44 million new shares.

Of this total, 40 million shares will be allocated to the Malaysian public and 24 million shares to eligible directors and employees of the company and its subsidiaries.

Another 100 million shares are for application by way of private placement to bumiputera investors approved by the Ministry of International Trade and Industry and the remaining 43.44 million shares will be made available by way of private placement to selected investors.

Under the agreement, Public Investment Bank will underwrite 64 million shares of the public portion.

SFP Tech group managing director Keoh Beng Huat said the listing exercise would enable the company to strengthen its public profile and amplify market awareness of its businesses especially on the provision of integrated engineering and automation solutions.

"The proceeds to be raised from the IPO exercise would be mainly utilised for our group's business expansion which includes the construction of our third manufacturing plant in Penang Science Park, and the purchases of new machinery and equipment. These plans form part of our strategies to grow our group in the provision of integrated engineering and automation solutions to our customers," Keoh added.

Public Investment Bank is the sole underwriter, principal adviser, sponsor and sole placement agent for SFP Tech's IPO exercise.

Kang Siew Li