KUALA LUMPUR (May 31): Feytech Holdings Bhd (KL:FEYTECH), an automotive seat manufacturer listed just last Tuesday (May 21), proposed to acquire a plot of land measuring 9.76 acres for RM19.98 million from DRB-Hicom Bhd (KL:DRBHCOM)’s unit Proton City Development Corp Sdn Bhd (PCDC).

In a filing on Friday, Feytech said it has entered into a sale and purchase agreement with PCDC to acquire the freehold industrial land in Perak, to establish the group’s new manufacturing facility.

“The proposed acquisition is in line with the group’s strategy to enhance production capacity for automotive seats and automotive cover in order to meet the growing demands of the automotive industry and allow for future expansion,” it said.

The purchase consideration will be financed through bank borrowings of RM11.98 million and internally generated funds of RM7.99 million, it noted.

As at end-March 2024, Feytech’s cash and bank balances amounted to RM43.54 million, while its total borrowings stood at RM27.07 million, its latest financial statement showed.

The group expects the proposed acquisition to be completed in the second half of 2025.

The company was listed on the Main Market on May 21 after raising some RM114.65 million from the issuance of new shares.

The bulk of the proceeds of about 18.4%, or RM21.13 million, would go towards the construction of a new corporate office with new manufacturing plant and warehouse, another 16.4% (RM18.76 million) would be for the construction of the new Kulim Plant 2, while 10.1% (RM11.6 million) has been earmarked for land acquisition, and the remaining 55% has been allocated for working capital, buying new machineries and listing expenses.

Shares in Feytech closed unchanged at RM1.13 on Friday, valuing the group at RM952.8 million.