Kok (centre) is seen with HPP Holdings’ executive director Ng Soh Hoon (left) and non-independent non-executive chairman Lau Tee Tee @ Lau Kim Wah.
KUCHING: Offset packaging printing specialist HPP Holdings Bhd (HPP Holdings) is advancing closer to becoming a public listed entity with the launch of its prospectus in conjunction with the company’s listing on the ACE Market of Bursa Malaysia Securities Bhd.
The prospectus launch marks the opening of applications for HPP Holdings’ initial public offering (IPO) of 19.422 million shares for the Malaysian public.
The IPO applications will close on January 7, 2021 and listing date is targeted on January 20, 2021.
HPP Holdings and its subsidiaries (the Hayan Group) specialise in full colour offset printing and production of paper-based packaging across various industries.
Hayan Group also produces and trades rigid boxes. Its clients span across key industries such as consumer electrical and electronics, food and beverages, sheath contraceptive and pharmaceuticals.
The group’s expertise and presence in the high-end packaging and printing market is backed by its long-term relationship with leading brands.
At the IPO price of RM0.36 per share, HPP Holdings will have a market capitalisation of RM139.8 million and raise proceeds of RM31.9 million.
Of the total proceeds, RM13 million will be utilised towards capital expenditure such as acquisition of printing machines, RM7.8 million for repayment of borrowings, RM5.2 million as working capital and RM2 million for sales and marketing expenses.
The remaining proceeds of RM3.9 million will be for defrayment of IPO expenses.
“We have the capability to provide comprehensive printing solutions for paper-based packaging which include corrugated and non-corrugated packaging,” group managing director Kok Hon Seng said.
“The group also invested in relevant infrastructure to cater for the growing demand of both standard and large format packaging printing.
“We are working to further diversify our customer base and are in discussions with several leading brands who are establishing their manufacturing facilities in Malaysia.
“We hope to conclude negotiations with these new customers soon. Our capacity expansion from this IPO is timely to capture these opportunities.
“We are very optimistic of our prospects and have put in place strategies to capture the rising demand and a larger market share.”
The IPO comprises a total of 108.669 million shares wherein 19.422 million shares will be made available to the Malaysian public, 30 million shares will be set aside for eligible directors, employees and business associates, 19.826 million shares will be offered via private placement to selected investors and the remaining 39.422 million shares for Bumiputera investors approved by the Ministry of International Trade and Industry.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for HPP Holdings’ IPO.
The post HPP eyes RM31.9 million from ACE Market IPO appeared first on Borneo Post Online.