KUALA LUMPUR (Oct 7): Liftech Group Bhd, which manufactures industrial lifting and handling equipment, is seeking to raise funds for expansions and operations from the ACE Market.

The company plans to expand its maintenance and repair business by acquiring new facilities in Bukit Minyak, Penang, and Kota Kinabalu, Sabah, according to its draft prospectus. The current facility in Penang is nearly fully occupied, limiting its ability to take on new orders for growth, Liftech noted.

“As we continue to secure more orders to grow our business, it necessitates the need for larger work area to undertake more maintenance and repair works as well as the space to store our inventories and machinery,” the company said.

Based in Puchong, Selangor, Liftech mainly designs and builds cranes such as overhead cranes and gantry cranes as well as industrial lifts including goods hoists for clients such as steel foundry and construction firms. The company also provides related maintenance and repair services.

Last year, the company made a net profit of RM6.6 million on revenue of RM57.66 million. About two-thirds of its revenue came from manufacturing while services contributed for about 19% and trading of components, accessories and other equipment accounted for about 16%.

The existing Sabah facility in Inanam, meanwhile, is a rented premise and the company is in the midst of acquiring a dedicated building in Kota Kinabalu for growth, Liftech said. Further, the company also intends to purchase new machinery and equipment for its factory in Taiping, Perak.

The purchases are expected to “enhance our manufacturing efficiency as well as reduce our dependency on manual labour and third-party suppliers for certain processes”, Liftech added.

The proposed initial public offering (IPO) involves public issue of new shares at a price to be determined later, the prospectus showed. Liftech’s managing director Ng Sea Kai and executive director Eng Peng Hong are cashing out part of their shares through an offer for sale.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory is the corporate finance adviser.