KHPT Holdings Berhad unveiled its initial public offering prospectus in conjunction with its proposed listing on the ACE Market of Bursa Malaysia Securities Berhad scheduled on 8 October 2024.

The group targets to raise gross proceeds of approximately RM21.73 million via the issuance of 108,644,300 at an IPO price of RM0.20 per share. Based on the group's enlarged share capital of 402,386,413 shares at the aforesaid IPO price, the market capitalisation of the Company will be approximately RM80.48 million. The Company's shares have been classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia.

The IPO proceeds will mainly be deployed the Group's business expansion, with 75.3% allocated for capital expenditure. Broken down further, 50.8% will be utilised for the purchase of press machines to expand Group's manufacturing capacity, 20.7% for acquiring automation equipment, including robotic arms, to enhance manufacturing efficiency by reducing manual labour. Additionally, another 2.1% and 1.7% will be allocated for the purchase of an overhead crane and for renovating the current factory at Telok Panglima Garang. The remaining 3.2% and 21.4% of proceeds has been earmarked for working capital as well as listing related expenses.

The public issue portion of the IPO will be made available from today and application will close on 25 September 2024 at 5.00 p.m.

KAF Investment Bank Berhad is the principal advisor, sponsor, underwriter and placement agent for KHPT's IPO exercise.