The Edge: PMW International gets KAF Investment Bank as underwriter for mid-November ACE IPO
KUALA LUMPUR (Sept 22): Concrete products maker PMW International Bhd, which is en route to be listed on Bursa Malaysia’s ACE Market in mid-November, has secured KAF Investment Bank Bhd as underwriter for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Under the agreement signed on Monday, KAF will underwrite 66.9 million new shares that PMW is offering to the Malaysian public.
Besides being the sole underwriter, KAF is also the principal adviser, sponsor and sole placement agent for the IPO, which involves a public issue of 178.41 million new shares and an offer for sale of 89.2 million existing shares.
PMW manufactures and sells a variety of pre-stressed concrete products, including spun concrete poles, piles and related items. The company also produces moulds, machinery and lighting products for the power, telecommunication and construction sectors in Malaysia and abroad. It has manufacturing facilities in Perak and Sabah.
Proceeds from the IPO will support business expansion, including the construction of a new facility in Tanjung Manis, Sarawak, to manufacture spun poles and piles to better serve customers in East Malaysia and tap into growing infrastructure opportunities in Sabah and Sarawak.
“As electricity consumption and peak demand continue to rise, the need to expand distribution networks has never been greater. This is seen in the increasing capital expenditure of power distribution companies within the country … This creates opportunities for us to play an essential role in strengthening the country’s utility infrastructure,” said executive director and CEO Lee Hon Hwa.
Lee said the group’s subsidiary, PMW Lighting, is also poised to benefit from major infrastructure projects across Peninsular and East Malaysia, as well as ongoing urbanisation and new residential and commercial developments.
Besides the Sarawak facility, IPO proceeds will be used to buy new machinery and equipment. The balance will go towards general working capital and listing expenses.