KUALA LUMPUR (April 9): WTEC Group Bhd, a foam and fabric products maker preparing to list on the ACE Market of Bursa Malaysia, expects at least 10% revenue growth in 2026, after acquiring a new factory by the third quarter of 2025.
The company is raising RM22.54 million via its IPO to fund the purchase of a new factory and machinery.
It expects operations to start in the second quarter of 2026, with growth dependent on the factory’s utilisation, which will take time to fully materialise.
The company manufactures foam products used in industries like automotive and electronics, as well as non-woven fabric parts for car armrests and seats. For financial year 2024 (FY2024), WTEC reported a 12.5% drop in profit to RM8.2 million, despite a 2.23% increase in revenue to RM52.03 million.
The new factory, located near its current facility in Kajang or Semenyih, will consolidate operations from three existing factories, improving productivity, reducing costs, and enhancing capacity.
WTEC plans to install new machinery to automate processes, reduce reliance on manual labour, and cut transportation and rental expenses.
WTEC undeterred by global uncertainty
WTEC remains confident about moving forward with its IPO plans despite new US tariffs, citing minimal exposure to the US.
The company’s revenue for FY2024 was RM52.03 million, with 75.98% coming from Malaysia, and only 24.02% from international markets.
The IPO aims to raise RM22.54 million, with funds allocated for purchasing and renovating a new factory (41.81%), buying machinery (13.1%), sales and marketing (4.44%), and working capital (22.7%). The company’s market capitalisation will be RM120 million, with the IPO priced at 25 sen per share, offering investors 28% of the company.
The IPO is open for subscription until April 15, 2025, with listing on Bursa Malaysia’s ACE Market scheduled for April 29, 2025.
Alliance Islamic Bank is the principal adviser for the IPO.