KUALA LUMPUR (May 27): EPB Group Bhd, which manufactures food processing and packaging equipment, said on Monday that it has secured approval from Bursa Malaysia for an initial public offering (IPO) on the ACE Market.

The approval marks another step forward for EPB’s IPO, since it filed a draft prospectus in September 2023.

“The IPO serves as a gateway to the capital markets, providing us with the necessary resources to fuel our next phase of growth and innovation, particularly in the realm of robotics integration in the food processing and packaging machinery solutions,” managing director Yeoh Chee Min said in a statement.

EPB is primarily engaged in designing, customising, fabricating, integrating and automating production lines for food manufacturing and processing companies. The company is also involved in the trading of cellulose casings and the manufacturing and trading of flexible packaging materials.

Proceeds from the IPO will be mainly used to fund its factory expansion, repay bank borrowings and bolster working capital.

“This expansion is not just about scaling our operations; it is about strategically positioning our group to capture emerging opportunities in the market, thereby reducing our gearing and bolstering our working capital,” said Yeoh.

The proposed IPO involves the public issue of 71.57 million new shares and an offer-for-sale of 40 million shares, according to its draft prospectus. All in all, the listing offers investors nearly 30% in the company.

From the public issuance, 19.57 million shares will be made available to the Malaysian public, with 50% of the shares set aside for Bumiputera public investors. There will also be 21.19 million shares allocated for eligible persons. The remaining 30.80 million shares would be for Bumiputera investors.

Under the offer for sale, 15.69 million shares are designated for approved Bumiputera investors, while the remaining 24.30 million shares will be allocated for identified investors.

Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise, while WYNCORP Advisory Sdn Bhd is the corporate finance adviser.