KUALA LUMPUR: Unitrade Industries Bhd, which is set to be listed on Bursa Malaysia's ACE Market on June 14, plans to raise RM100 million from its initial public offering (IPO).

       With the issue price of 32 sen per share and an enlarged share capital of 1.56 billion shares, the group will have a market capitalisation of RM500 million upon its listing.

       It is set to become the largest listing on the ACE Market of Bursa Securities since the market’s inception in 2009.

       Managing director Nomis Sim Siang Leng said proceeds from the listing will allow the company -- which sells and distributes building materials -- to quickly take advantage of the growing industry.

       "Of the proceeds, RM50.5 million will be used for working capital purposes to increase its inventory count and product variety, and our group is also allocating RM5.0 million to build a new pipe fabrication centre.

       "Upon completion, we will be able to provide end-to-end pipe services with the entire fabrication process being conducted off-site at our new industrial complex,” he said at the virtual launch of Unitrade’s prospectus today.

       He added that RM39.8 million will be utilised for repayment of bank borrowings and the remaining RM4.7 million would be used for listing expenses. - Bernama