KUALA LUMPUR (March 20): Foam and fabric products maker WTEC Group Bhd entered an underwriting agreement with Alliance Islamic Bank Bhd as part of its initial public offering (IPO) on the ACE Market.

In a statement on Thursday, the group said its IPO exercise encompasses a public issuance of 90.2 million new shares, representing 18.8% of its enlarged share capital, along with an offer for sale of 43.2 million existing shares, representing 9% of its enlarged share capital.

WTEC Group said it is targeting to list on the ACE Market in April 2025.

Under the agreement, Alliance Islamic Bank will underwrite a total of 33.6 million new shares made available to the Malaysian public and pink form allocations.

“This underwriting agreement marks a significant step towards becoming a listed company in Malaysia, strengthening our foundation for growth,” said WTEC Group managing director Tan Kok Kheng.

Out of the 90.2 million new shares, 24 million shares will be made available to the Malaysian public via balloting while 9.6 million shares will be for eligible persons.

The remaining 56.6 million new shares are set aside for Bumiputera investors through private placement under the Ministry of Investment, Trade and Industry.

Through its subsidiaries, the foam and fabrics manufacturer serves a diverse range of industries, including automotive, construction, electrical, electronics and others.

With over 20 years of experience, the company attributed its network of long-term customers to its strong reputation in the industry. Equipped with a diverse range of machinery and equipment, WTEC stated it believes in its capabilities to cater to various customer needs and applications.

Tan noted that the New Industrial Master Plan 2030 is expected to accelerate the expansion of the manufacturing sector, while the automotive sector is projected to reach 1.2 million units by 2030, boosted by the rising demand for electric vehicles and expanding aftermarket.

Additionally, out of 43.2 million existing shares for sale through private placement, 39.8 million will be made available to selected investors and the remaining 3.4 million for Bumiputera investors.

Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.

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