OFFSET packaging printing specialist HPP Holding Bhd which is en route for a listing in the ACE Market of Bursa Malaysia early next month will make available for sale 108.67 million shares at an initial public offering (IPO) price of 36 sen/share.
Of the shares, 19.42 million will be made available to the Malaysian public, 30 million for eligible directors, employees and business associates, private placement for selected investors (19.83 million) and Bumiputera investors approved by the Ministry of International Trade and Industry (39.42 million).
The company unveiled its prospectus today with its IPO application to close on Jan 7 and listing slated for Jan 20.
At an IPO price of 36 sen/share, HPP will have a market capitalisation of RM139.8 mil with raise proceeds of RM31.9 mil.
Of the total proceeds, RM13 mil will be utilised towards capital expenditure such as acquisition of printing machines, repayment of borrowings (RM7.8 mil), working capital (RM5.2 mil) and sales and marketing expenses (RM2 mil).
The remaining proceeds of RM3.9 mil will be for defrayment of IPO expenses.
HPP and its subsidiaries (the Hayan Group) specialise in full colour offset printing and production of paper-based packaging across various industries.
According to its prospectus, HPP’s 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.
HPP’s group managing director Kok Hon Seng said the company has the capability to provide comprehensive printing solutions for paper-based packaging which include corrugated and non-corrugated packaging.
“The group also invested in relevant infrastructure to cater for the growing demand of both standard and large format packaging printing,” he pointed out.
“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.”
HPP expects to conclude negotiations with these new customers soon. “Our capacity expansion from this IPO is timely to capture these opportunities,” he added. – Dec 15, 2020
