KUALA LUMPUR (Oct 1): Life Water Bhd has entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Amanah IB) for its initial public offering (IPO) on the Main Market of Bursa Malaysia.
Life Water is a beverage manufacturer specialising in the manufacturing and distribution of drinking water and carbonated drinks, primarily serving the Sabah market.
The IPO entails a public issue of 97.56 million new ordinary shares, and an offer for sale of 28.39 million existing ordinary shares. Of the 97.56 million issue shares, 23.66 million issue shares would be made available for application to the Malaysian public, followed by 14.19 million issue shares made available for application to the eligible directors, employees and persons who have contributed to the success of the company, as well as 560,000 issue shares made available by way of private placement to selected investors.
The remaining 59.14 million issue shares were made available by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
MIDF Amanah IB will underwrite a total of 37.86 million issue shares, comprising portions that will be made available for application to the Malaysian public, as well as the eligible directors, employees and persons who have contributed to the company.
Life Water co-founder and managing director Liaw Hen Kong described the IPO as a significant step forward for the company.
“The proceeds from the IPO will enable us to accelerate our expansion plans, including upgrading our production capabilities and enhancing our distribution network, all while supporting our growing operations across Sabah. This marks an exciting chapter for Life Water, as we strengthen our position in the beverage industry and continue to provide quality beverages at affordable prices to our customers,” he said in a statement.
The gross proceeds from Life Water's IPO will be allocated for significant business expansion initiatives, supplement working capital requirements, and defray listing expenses. “These include the purchase of an additional drinking water manufacturing line for its Sandakan Sibuga Plant 1, and the establishment of a new manufacturing plant, Sandakan Sibuga Plant 2, with an estimated built-up area of 50,000 sq ft, comprising both factory and office spaces.”
The company also plans to enhance its existing plastic packaging facilities in Kota Kinabalu, with the KK IZ8 Plant 1 to be converted into a dedicated plastic packaging manufacturing plant to support its beverage operations. Furthermore, Life Water plans to set up a second distribution centre in Sandakan, with a depot for its delivery truck fleet, as the current warehousing space is fully utilised.
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