PETALING JAYA: Slated to be listed on the ACE Market on June 14, Unitrade Industries Bhd aims to raise RM100mill via its initial public offering (IPO).

       With an 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 RM500mil upon listing.

       The homegrown building materials wholesaler and distributor is set to become the largest listing on the ACE Market to-date.

       In conjunction with the company’s prospectus launch, Unitrade group managing director Nomis Sim Siang Leng said the group plans to have more working capital and bigger storage.

       “Correspondingly, we will be able to offer clients offsite pipe fabrication service, freeing up space at their construction sites and giving them greater operational efficiency to expedite construction progress.”

       “The added service is set to help our customers free up space at their construction sites, reduce the need for manpower, and potentially expedite construction progress.

       “With that, the comprehensiveness of our service offerings will be further elevated,” he said.

       In a statement yesterday, Unitrade said it will allocate RM39.8mil for repayment of bank borrowings, RM50.5mil for working capital, RM5mil for pipe fabrication centre, and the remaining RM4.7mil to defray the estimated listing expenses.

       Unitrade intends to distribute dividend of up to 30% of its annual net profit to its shareholders.

       For the IPO exercise, M&A Securities Sdn Bhd has been appointed as Unitrade’s adviser, sponsor, underwriter and placement agent.