KUALA LUMPUR (Jan 11): Sabah-based Life Water Bhd, which manufactures drinking water and carbonated drinks, has filed its prospectus exposure for its initial public offering (IPO) with the Securities Commission Malaysia (SC).
According to the document, the IPO involves up to 125.95 million shares, comprising an offer for sale of up to 28.39 million existing shares and public issue of up to 97.56 million new shares.
A total of 23.66 million shares will be offered to the public and 14.20 million shares will be reserved for application by eligible staff and directors of the group. Another 560,000 shares will be placed with selected investors while 59.15 million shares will be offered to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Life Water, which is seeking to list on the Main Market of Bursa Malaysia, markets drinking water and carbonated drinks under its brands. The company is also a contract manufacturer for private label brands of drinking water for petrol stations, hypermarket, wholesalers and hotels.
The company has three manufacturing plants in Sabah with a total annual production capacity of 389 million litres of drinking water and 37 million litres of carbonated drinks and fruit drinks. A new manufacturing plant in Keningau is expected to be operational by the third quarter of 2024.
Life Water said it intends to utilise the IPO proceeds to finance its capital expansion plan and working capital.
The expansion plan includes the purchase of a drinking water manufacturing line for its Sandakan Subuga Plant Two, the setting up of a second distribution centre in Sandakan and the expansion of existing plastic packaging facilities in Kota Kinabalu.
On the financial front, Life Water reported a profit after tax (PAT) of RM20.62 million for FY2023 up from RM15.74 million in FY2022. It logged a PAT of RM17.66 million for FY2021.
The company's top line improved steadily to RM150.96 million for FY2023 from RM121.4 million for FY2022 and RM103.53 million for FY2021.
MIDF is the principal adviser, underwriter and placement agent for the IPO.