KHPT Group is principally involved in manufacturing and selling automotive parts, including body parts, seat structures, absorber parts, and drive plates, to local automotive parts manufacturers, primarily Tier-1 suppliers and manufacturers.
The company’s IPO involves the issue of 108.64 million new ordinary shares and an offer for sale of 38.23 million existing ordinary shares.
“Out of the public issue shares, 78.47 million will be allocated to selected investors via private placement, 20.12 million shares to the Malaysian public via balloting, and 10.06 million shares to eligible directors and employees of KHPT and its subsidiaries.
“The 38.23 million shares under the offer for sale will be made available to selected investors via private placement,” it said in a statement.
Under the underwriting agreement, KAF IB will underwrite a total of 30.18 million shares comprising the public issue shares made available to the Malaysian public via balloting and eligible directors and employees of the group.
KHPT said the gross proceeds raised from the public issue have been earmarked for capital expenditure including the purchase of press machines and automation equipment, an overhead crane and renovation of its existing factory located in Teluk Panglima Garang, Selangor, to cater for the expansion of new body parts production line.
Meanwhile, KHPT group managing director Eloise See said the listing of KHPT will enable it to leverage the growing demand and market opportunities to drive sustainable value creation for its stakeholders.
“Operationally, our current body parts production line has a utilisation rate of about 84%, with an estimated annual manufacturing capacity of over 3.1 million pieces.
“We intend to utilise the IPO proceeds to fund the installation of a new body parts production line, which is expected to increase the group’s overall manufacturing capacity for this segment to about 5.7 million pieces per annum to meet the anticipated demand and growth in the near term,” she said.
“KAF IB is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise,” KHPT said, adding that KHPT is expected to be listed in October 2024.