EPB Group Sets to Raise RM40.08 Million from ACE Market IPO

Mr. Stephen Chua Chee Keong, Independent Non-Executive Director, EPB Group Berhad; Mr. Ooi Hun Pin, Independent Non-Executive Director, EPB Group Berhad; Mr. Moh Jiun Haur, Director of WYNCORP Advisory Sdn Bhd. and WYNCORP Advisory; Mr. Liew Meng Hooi, Deputy Managing Director, EPB Group Berhad; Mr. Noor Azman Bin Nordin, Independent Non-Executive Chairman, EPB Group Berhad; Mr. Yeoh Chee Min, Managing Director, EPB Group Berhad; Ms. Ooi Kim Kew, Executive Director, EPB Group Berhad; Ms. Lim Chia Wei, Managing Director of Malacca Securities Sdn. Bhd.; Mr. Khor Chai Tian, Independent Non-Executive Director, EPB Group Berhad [L-R]

This significant milestone is set to bolster EPB’s market position and support the expansion of its operations, driven by targeted growth strategies to expand its business footprint and adopting industrial revolution 4.0 through robotic integrations in their food processing and packaging machinery solutions.

The Group, established in 1992, has built a strong market presence as a comprehensive solutions provider in the design, customisation, fabrication, integration, and automation of production lines for the food processing and packaging machinery solutions segment. The Group also excels in the trading of cellulose casings as well as manufacturing and trading of flexible packaging materials, catering to a wide range of needs in the food manufacturing industry.

For information, the IPO shares shall be allocated in the following manner: -

A. Public Issue of 71,570,000 new ordinary shares (“Issue Shares”)

Malaysian public

19,570,000 Issue Shares, or 5.26% of the enlarged issued share capital upon listing will be made available for application by the Malaysian public via balloting, of which 50% of this allocation representing 9,785,000 Issue Shares shall be made available to Bumiputera public investors.

Eligible persons

21,196,000 Issue Shares, or 5.70% of the enlarged issued share capital upon listing will be reserved for application by the eligible directors, eligible key senior management, eligible employees and business associates (including any other persons who have contributed to the success of the Group).

Private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”)

30,804,000 Issue Shares, or 8.28% of the enlarged issued share capital upon listing will be made available for application by Bumiputera Investors approved by MITI by way of private placement.

B. Offer for Sale of 40,000,000 ordinary shares (“Offer Shares”)

Private placement to Bumiputera investors approved by MITI

15,696,000 Offer Shares, or 4.22% of the enlarged issued share capital upon listing shall be made available to Bumiputera investors approved by MITI.

Private placement to selected investors

24,304,000 Offer Shares, or 6.53% of the enlarged issued share capital upon listing, shall be made available to selected investors.

The proceeds of RM40.08 million raised from the Public Issue will be earmarked for the following purposes: -

• Factory expansion. Including the acquisition of land, construction of a new factory, and purchase of machineries to enhance operational capabilities.
• Repayment of bank borrowings. Strengthening the balance sheet and reducing gearing to further improve financial stability.
• Working capital purposes. Supporting daily operational needs and ensuring smooth business operations.
• Listing expenses purposes. Covering IPO expenses of the Group.

Applications for the IPO have opened starting at 10.00 a.m. today following the prospectus launch and will close at 5.00 p.m. on 31 July 2024. The targeted IPO listing date of the Company on the ACE Market of Bursa Securities is on 23 August 2024. At the IPO price of RM0.56 per IPO share, EPB will have a market capitalisation of RM208.32 million ahead of its debut.

Mr. Yeoh Chee Min, Managing Director of EPB Group Berhad, stated, "We are deeply appreciative of the endorsement from Bursa Securities for our IPO on the ACE Market of Bursa Securities. This significant occasion marks a milestone for our Group's journey, which will enhance our visibility and allow us to expand our business footprint. The IPO serves as a gateway to the capital markets, providing us with the necessary resources to fuel our next phase of growth and innovation, particularly in the realm of robotics integration in the food processing and packaging machinery solutions we currently provide to our customers."

Mr. Liew Meng Hooi, Deputy Managing Director of EPB Group Berhad, stated, "Our success at EPB Group is built on strong relationships with our customers. By working closely with our customers, we are able to understand their challenges and provide them with customised solutions. Looking ahead, we are excited to explore new opportunities and expand our product offerings. Our commitment to innovation and excellence will ensure that we stay ahead of industry trends and continue to deliver valuable solutions for our clients."

Ms. Lim Chia Wei, Managing Director of Malacca Securities Sdn. Bhd. added, "We are delighted to assist EPB Group with its IPO. The Group's comprehensive approach to delivering food processing and packaging machinery solutions, combined with a relentless drive for innovation and a strong focus on customer needs, sets a solid foundation for future growth. With a commendable track record since 1992 and a team rich in experience, EPB Group Berhad is well-equipped to navigate the dynamic landscape of the food industry." 

Malacca Securities Sdn. Bhd. is the Principal Adviser, Sponsor, Underwriter and Placement Agent, and WYNCORP Advisory Sdn. Bhd. is the Corporate Finance Adviser of EPB Group Berhad.

Media Contact:
Xinyi Ching
Swan Consultancy
x.ching@swanconsultancy.biz