KUALA LUMPUR (Oct 7): Security seals manufacturer Mega Fortris Bhd on Monday signed an underwriting agreement with RHB Investment Bank Bhd and AmInvestment Bank Bhd for its proposed initial public offering (IPO) on the Main Market of Bursa Malaysia.
The Selangor-based company, which is partly backed by Singapore’s Oversea-Chinese Banking Corp, said in a statement that it expects to be listed within the fourth quarter of 2024.
RHB Investment is the IPO’s sole principal adviser, joint underwriter and joint placement agent, while AmInvestment Bank serves as the joint underwriter and joint placement agent.
Mega Fortris group managing director and chief executive officer Datuk Adrian Ng Meng Poh said the IPO reflects the company’s commitment to expand its security seal business as well as to enter new markets, including its upcoming factory in the UK and a new venture in Macao.
“We believe this will strengthen our global presence and enable us to continuously provide innovative security solutions to meet our customers’ needs,” Ng said.
Meanwhile, RHB Investment Bank managing director and CEO Kevin Davies expressed his confidence that Mega Fortris will propel to new heights globally as it has built a strong reputation in the security solutions industry.
“As they embark on this exciting growth phase, we are proud to provide the financial backing that supports their international expansion plans, while reaffirming RHB’s commitment to innovative investment banking solutions that drive success for our clients,” Davies said.
Mega Fortris manufactures up to 530 million pieces of security seals annually, which are used on boxes of playing cards, containers and cables, to prevent tampering and secure goods during transportation and storage, according to the draft prospectus filed with the Securities Commission Malaysia.
The company has said that its products are used in about 120 countries and currently serves 38 casino operators in Macau, the Philippines, Vietnam, Cambodia and other countries for their security seal.
Mega Fortris’ IPO comprises a public issuance of 147.87 million new shares and an offer for sale of up to 147.87 million existing shares. The joint underwriters will underwrite the retail offering of 67.6 million issue shares, representing 22.86% of the total IPO shares.
The issue shares, representing 17.5% of the enlarged issued share capital, will include 42.25 million shares for application by the Malaysian public, of which 21.13 million shares will be allocated to Bumiputera investors, as well as 25.35 million shares to eligible persons, and 42.25 million shares to institutional and select investors through a private placement.
Meanwhile, the offer-for-sale tranche will involve 80.27 million existing shares to institutional and select investors, and another 67.6 million shares to Bumiputera investors through a private placement.