From left: West River Bhd executive director Cheong Wee Kim, managing director Lim Yong Lai and non-executive chairman Datuk Seri Dr Shahril Mokhtar, with M&A Securities Sdn Bhd managing director (corporate finance) and executive director Datuk Bill Tan and deputy head of corporate finance Danny Wong at the underwriting agreement signing ceremony on Monday.
KUALA LUMPUR (March 10): West River Bhd, an engineering firm, said on Monday that it has signed an underwriting agreement with M&A Securities for its initial public offering (IPO) on the ACE Market.
The target is to launch the IPO in May 2025, West River said in a statement. Under the agreement, M&A Securities will underwrite offering shares set aside for the public and eligible persons under ‘pink form’ allocation, the company said.
“This underwriting agreement marks a significant step forward in our journey to becoming a listed company,” said West River managing director Lim Yong Lai. “The proceeds will be instrumental in accelerating our expansion plans and enhancing operational efficiency.”
West River specialises in mechanical-and-electrical engineering, air-conditioning and ventilation systems, and intelligent building solutions. The company provides innovative and energy-efficient solutions across various sectors, including commercial, industrial, and infrastructure industries.
The proposed IPO involves a public issue of 71.54 million new shares, and an offer for sale of 35.77 million existing shares at a price to be determined later, according to its draft prospectus filed in August 2024. All in all, the listing offers investors up to a 30% stake in the company.
Funds raised from the IPO have been earmarked for expansion and infrastructure, including part-finance the acquisition of the land costing RM5.81 million, and the construction of a new factory to improve production and inventory management.
The company will also set aside some of the funds for repayment of borrowings, general working capital, and to defray listing expenses.
Meanwhile, the offer-for-sale tranche will be privately placed out to select investors, and any proceeds will accrue entirely to the selling shareholder, Neutron Capital Sdn Bhd, which is fully controlled by Lim.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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