Friday 29 Mar 2024
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KUALA LUMPUR (July 15): Sheet metal fabrication firm Coraza Integrated Technology Bhd has filed a draft prospectus for an initial public offering (IPO) on the ACE market.

According to its draft IPO prospectus posted on the Securities Commission Malaysia website, the proposed IPO will involve 139.21 million shares, comprising 117.79 million new shares and an offer for sale of up to 21.42 million existing shares.

Of the 117.79 million new shares to be issued, 21.42 million each will be allocated to the Malaysian public, and eligible directors and employees, while 79.96 million will be issued by way of private placement to selected investors.

The group plans to use the IPO proceeds to build a new factory with an estimated construction cost of RM14.28 million.

It also plans to use part of the proceeds to extend its existing factory, purchase new machinery, implement enterprise resource planning system, and repay its bank borrowings.

M&A Securities has been appointed as the IPO adviser, sponsor, underwriter and placement agent.

Coraza Integrated Technology is principally involved in the fabrication of sheet metal and precision machined components, as well as the provision of related services.

Sheet metal, which is metal formed by industrial process into thin, flat pieces, is one of the fundamental forms used in metalworking, as it can be cut and bent into various shapes and sizes. It is used in the making of countless everyday objects.

The group’s profit after tax for the financial year ended Dec 31, 2020, rose 84.52% to RM6.31 million, from RM3.42 million a year ago, as revenue grew 42.82% to RM83.69 million from RM58.59 million.

Edited ByTan Choe Choe
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