KUALA LUMPUR: ACE Market=bound Wentel Engineering Holdings Bhd is targeting estimated proceeds of RM71.03mil from its initial public offering (IPO) to cater for the next phase of its business expansion.

       At the launch of its prospectus, the group said it will issue 273.2 million new shares at a price of 26 sen a share.

       Of the total proceeds, it said 56.31% will be used to part finance the construction of its new manufacturing plant and 35.24% of the amount will go towards part financeing the purchase of new machinery and equipment, while the remaining proceeds will offset listing-related expenses.

       Established in 2000, Wentel Engineering Group is principally involved in the fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products for the manufacturers of several industries such as security screening equipment, computer numerical control (CNC) machines, semiconductor manufacturing equipment, medical diagnostics equipment, passenger coaches and industrial 3D printers.

       Based on the group’s enlarged share capital of 1.15 billion shares and the aforesaid IPO price, the group's market capitalisation will be approximately RM299mil upon its listing on Feb 6, 2024.

       "With the listing status and proceeds from the IPO, we are committed to ongoing growth, innovation and sustainable profitability.

       "This IPO represents a new chapter in our journey, providing us with the platform to move forward with greater velocity and the opportunity to build long-term value for our stakeholders," said Wentel Engineering executive director Wong Chun Wei in a statement.

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       The application period of the IPO will begin today and close on Jan 22, 2024, at 5pm.

       TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent of the listing exercise.