KUALA LUMPUR: ACE Market-bound SFP Tech Holdings Bhd has inked an underwriting agreement with Public Investment Bank Bhd for its initial public offering (IPO).

       The integrated engineering and automation solutions provider said Public Investment Bank will underwrite 64 million new shares made available to the Malaysian public, the group's eligible employees and other persons who have contributed to the success of the group.

       The bank is also the principal advisor, sponsor and placement agent for the IPO exercise.

       "We are grateful to have the support of PIVB as our sole underwriter for our IPO, which signals a strong sense of confidence towards SFP Tech.

       "We believe this listing exercise would enable SFP Tech to strengthen its public profile and amplify market awareness of its businesses especially on the provision of integrated engineering and automation solutions," said SFP Teh group managing director Keoh Beng Huat in a statement.

       SFP Tech's IPO entails a public issue of about 207.44 million new shares, of which 40 million will be made available for subscription by the Malaysian public while 24 million will be available to eligible directors and employees.

       One hundred million shares will be allocated for private placement to Bumiputera investors and the remaining 43.44 million shares will be privately placed with selected investors.

       According to Keoh, the proceeds from the IPO will be mainly utilised for the group's business expansion, including the construction of its third manufacturing plant in Penang Science Park and the purchase of new machinery and equipment.

       Barring any unforeseen circumstances, the company is expected to launch its prospectus by the end of May 2022, he added.