KUALA LUMPUR (May 19): Enest Group Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its proposed initial public offering (IPO) and transfer from the LEAP Market to the ACE Market of Bursa Malaysia Securities Bhd.
In a statement on Tuesday, the company said under the agreement, M&A Securities will underwrite all of the 37.78 million shares allocated to public and Pink Form investors.
According to its draft prospectus, the IPO involves the issuance of 116.25 million new shares and an offer for sale of 15.05 million existing shares.
Of the new shares, 29.06 million will be allocated to the Malaysian public, 8.72 million to eligible directors, employees and contributors via Pink Form allocations, while 72.66 million shares are reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry. Another 5.81 million new shares and 15.05 million existing shares will be placed out to selected investors.
Enest Group managing director Tan Teh Jie said in the statement the IPO proceeds will mainly be used for working capital, particularly the purchase of raw bird’s nest supplies, repayment of bank borrowings, and listing expenses.
Founded in 2015, Enest Group processes and trades edible bird’s nest products, with China as its largest export market.
The group also sells bottled bird’s nest and health beverages, and operates a health and personal care retail business under the “Kang Li” brand through its retail outlets and e-commerce platforms.
M&A Securities is the adviser, sponsor, underwriter, and placement agent for the IPO.