KHPT Holdings Berhad clinches underwriting agreement with KAF IB

KUCHING: KHPT Holdings Berhad (KHPT) has entered into an underwriting agreement with KAF Investment Bank Berhad (KAF IB) for the Company’s Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).

According to its statement, the IPO entails a public issue of 108,644,300 (Public Issue) new ordinary shares (Public Issue Shares) and an offer for sale of 38,226,600 existing ordinary shares.

“Of the 108,644,300 Public Issue Shares, 78,465,200 Public Issue Shares will be made available to selected investors via private placement, 20,119,400 Public Issue Shares will be made available to the Malaysian public via balloting and 10,059,700 Public Issue Shares made available to the eligible directors and employees of KHPT and its subsidiary (KHPT Group).

“The 38,226,600 shares under the offer for sale will be made available to selected investors via private placement,” it said.

Pursuant to the underwriting agreement, it stated that KAF IB will underwrite a total of 30,179,100 Public Issue Shares, being the Public Issue Shares portion which will be made available to the Malaysian public via balloting and eligible directors and employees of the KHPT Group.

Following this, it said that KHPT Group is principally involved in the manufacturing and sale of automotive parts to local automotive manufacturers and mainly to their respective Tier-1 suppliers and manufacturers.

“Automotive parts which are supplied by KHPT range from body parts, seat structure and other parts (e.g. absorber parts, drive plate).

“The gross proceeds arising from the Public Issue have been earmarked for a capital expenditure investment, which include the purchases of press machines and automation equipment, an overhead crane and renovation of its existing factory located in Teluk Panglima Garang, Selangor to cater for the expansion of new body parts production line,” it said.

In light of this, KHPT group managing director Datin Eloise See stated that the underwriting agreement entered with KAF IB underscores their commitment to achieving performance excellence and delivering value to their stakeholders.

“KAF IB’s extensive experience and strong track record in managing successful IPOs will be instrumental in guiding KHPT through this exciting corporate journey.

“We have obtained the necessary approvals and are pleased with the progress being made in relation to the listing exercise,” she said.

She added that the listing of KHPT will enable it to leverage on the growing demand and market opportunities in order to drive sustainable value creation for its stakeholders.

“Operational wise, the utilisation rate for its body parts production line sits at approximately 84 per cent with an estimated annual manufacturing capacity of over 3.1 million pieces.

“We intend to utilise the Public Issue’s IPO proceeds to fund the installation of a new body parts production line, which is expected to increase the KHPT Group’s overall manufacturing capacity for the body parts segments to about 5.7 million pieces per annum to meet the anticipated demand and growth in the near term.

“We are confident that the listing of KHPT will strengthen our position in the automotive supply chain industry and align our dedication to deliver quality and reliable products and services.

“We are also pleased as the public will be able to participate in the company’s growth with the listing of KHPT on the ACE Market of Bursa Malaysia”, she said.

For the record, KHPT is expected to be listed in October 2024 and KAF IB is the principal adviser, sponsor, underwriter and placement agent for the IPO.