KUALA LUMPUR (Dec 28): Metal fabricator Wentel Engineering Holdings Bhd, which is eyeing to list on the ACE Market of Bursa Malaysia, has entered into an underwriting agreement with TA Securities Holdings Bhd to underwrite a total of 57.5 million new shares, being the portion made available to the Malaysian public via balloting.

Wentel Engineering's initial public offering (IPO) entails a public issue of 273.2 million new ordinary shares and an offer for sale of 46 million existing ordinary shares.

Of the 273.2 million public issue shares, 57.5 million will be made available to the Malaysian public via balloting and 33 million will be allocated to the eligible directors, employees and others.

A further 38.95 million shares will be allocated by way of private placement to selected investors and the remaining 143.75 million shares will be allocated for Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

Proceeds from the IPO, the amount of which has not been clarified, will be utilised to part finance the construction of two blocks of single storey factory with double storey office and two blocks of workers’ hostel, collectively known as the company's new manufacturing plant.

Wentel Engineering will also utilise the IPO proceeds to part finance the purchase of new machinery and equipment for the new manufacturing plant.

"The signing of the underwriting agreement symbolises a significant milestone for Wentel Engineering as it brings us one step closer to being a listed entity. The IPO will provide funding for our expansion and enable the public to participate in our group’s future growth," its executive director Wong Chun Wei said in a statement.

"Meanwhile we will continue to leverage on our core competencies and strengths in the fabrication of semi-finished metal products, fabrication of metal parts and assembly of finished products to further grow our business moving forward," he added.

Besides being the sole underwriter of Wentel Engineering’s IPO, TA Securities is also the principal adviser, sponsor and placement agent for this exercise.

Incorporated in 2000, Wentel Engineering is principally involved in the fabrication of semi-finished metal products, fabrication of metal parts and assembly of finished products for the manufacturers of several industries such as security screening equipment, computer numerical control machines, semiconductor manufacturing equipment, medical diagnostics equipment, passenger coaches and industrial 3D printers.