MOBILIA Holdings Bhd which is en route to a listing on the ACE Market of Bursa Malaysia has made available 60 million initial public offering (IPO) shares at the issue price of 23 sen/share to raise RM13.8 mil in proceeds.
The company which is principally involved in the design and manufacturing of home furniture has set aside 20 million shares for application by the Malaysian public; its eligible employees (12 million shares); and private placement to selected investors (28 million shares).
From the RM13.8 mil raised, RM5.8 mil will be utilised for the construction of office, showroom, and factory; repayment of borrowings (RM1.8 mil); and working capital (RM1.9 mil).
A further RM3 mil of the proceeds will be utilised to defray estimated listing expenses, whereas the remaining RM1.3 mil will be allocated for the purchase of machinery.
“Part of the proceeds from the IPO will be utilised to expand our current manufacturing plant to support our long-term business growth and to purchase new types of machinery in line with our plan to increase automation in our manufacturing process.” Ervin Quek Yan Song who is the alternate director to Quek Wee Seng pointed out in a video presentation.
“The expansion of our factory which comprises two blocks of single-storey detached factory buildings are in full operation now.”
By beefing up its production capacity, the company is able to accept more orders which is in line with its aim to develop at least 60 new designs of home furniture annually.
To date, Mobilia has successfully exported its products – mainly dining, living and bedroom furniture – to countries in Asia, North America, Europe, Middle East, South America, Australasia and East Africa.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent of the Mobilia IPO exercise. – Feb 3, 2021
