Home Business Econframe to issue 65m new shares for ACE Market listing

Econframe to issue 65m new shares for ACE Market listing

Econframe to issue 65m new shares for ACE Market listing 1

PETALING JAYA: Econframe Bhd is seeking to list on the ACE Market of Bursa Malaysia.

According to its prospectus draft filed with the Securities Commission Malaysia, its initial public offering entails a public issue of 65 million new shares, of which 16.25 million shares will be made available to the Malaysian public; 3.25 million shares for eligible directors and employees; 13 million shares by way of private placement to selected investors; and 32.5 million shares by way of private placement to bumiputra investors approved by the Ministry of Trade and Industry.

There will also be an offer for sale of 32.5 million existing shares to selected investors.

Econframe is involved in design and manufacturing of metal door frames, fire resistant door sets, metal doors as well as trading of wooden doors and ironmongery.

Proceeds raised from the listing exercise will be used towards land acquisition and construction of new manufacturing facility, automation of manufacturing process and working capital as well as to defray the expenses incurred from the exercise.

The company said it has a piece of land in Kapar, Klang, in which it intends to purchase for the construction of the new manufacturing facility.

“We expect to complete the acquisition of the land within three months upon listing. The construction is expected to be completed within 12 months from the commencement of construction. We expect our new factory to be in full operation by second half of 2022.”

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For FY19, the group reported a net profit of RM8.14 million against RM44.09 million in revenue.

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