Mega Fortis inks underwriting agreement with RHB IB, AmInvestment Bank for IPO

MEGA Fortris Bhd has signed an underwriting agreement with RHB Investment Bank Bhd (RHB IB) and AmInvestment Bank Bhd for its proposed initial public offering (IPO) on the Main Market of Bursa Malaysia in the fourth quarter of 2024.

RHB IB is the IPO’s sole principal adviser, joint underwriter, and joint placement agent, while AmInvestment Bank serves as the joint underwriter and joint placement agent.

In a statement today, group managing director and chief executive officer Datuk Ng Meng Poh said the IPO underscores the company’s commitment to expanding its security seal business and marks a key milestone in its growth strategy.

“We believe this will strengthen our global presence and enable us to continuously provide innovative security solutions to meet our customers’ needs,” he said.

The statement stated that proceeds from the IPO will partly fund the establishment of a new factory in the  United Kingdom and a new business venture in Macao, with the remainder used for listing expenses.

Mega Fortris plans to undertake an IPO of up to 295.74 million shares, including a public issue of 147.87 million new shares, representing approximately 17.50 per cent of its enlarged issued share capital.

“A total of 42.25 million shares, representing five per cent of the enlarged issued share capital, will be reserved for the Malaysian public via balloting, with 21.13 million shares set aside for Bumiputera investors.

“Additionally, 25.35 million shares, representing three per cent of the enlarged issued share capital, will be made available for application by eligible persons. The joint underwriters will underwrite the retail offering of 67.60 million shares, representing 22.86 per cent of the total IPO shares,” Mega Fortris said.

The company also noted that 38.02 million shares will be made available for application via private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).

The remaining 42.25 million shares will be allocated to institutional and selected investors through private placement.

The IPO also involves the sale of up to 147.87 million existing shares, with up to 80.27 million offer shares allocated to institutional and selected investors, and 67.60 million shares reserved for identified Bumiputera investors by MITI. – Oct 8, 2024

 

Main image: megafortis (Facebook)

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