KUALA LUMPUR: SFP Tech Holdings Bhd, a one-stop integrated engineering and automation solutions provider, plans to raise RM62.23mil proceeds from its initial public offering (IPO) exercise.

       The company is en route to a listing on Bursa Malaysia’s Ace Market on June 20.

       Chief executive officer Dr Chang Chee Jia said of the proceeds, RM24.5mil would be used to purchase new machinery and equipment, RM15mil for the construction of its third plant, and RM10mil for repayment of bank borrowings.

       “Manufacturing plant three in Penang, comprising a three-storey factory and warehouse with three-storey office building, will be utilised for computer numerical control (CNC) machining activities as well as design and development (D&D) centre.

       “It is expected to be completed by end of the second quarter of 2022 and fully operational by the fourth quarter of 2022,” he told reporters after the launch of the company’s prospectus yesterday.

       He said the company would also purchase a new laser cut and punch machine and 41 new CNC milling machines over the next three years, which would increase maximum manufacturing production by 35.9% to 498,465 hours per annum from 366,795 currently.Chang said the remaining proceeds would be used for working capital expenditure (RM5.13mil), D&D centre (RM4.6mil) and listing expenses (RM3mil).

       “The group has continuously invested in advanced machinery and equipment in order to expand its range of products and services to include more complex products and larger products with higher accuracy as well as to better serve our customers from various industries.” — Bernama