Wegmans Holdings Berhad IPO

Wegmans Holdings Berhad, a company involved in optical inspection and automated handling equipment is scheduled to be listed in ACE Market of Bursa Malaysia on the 6th March 2018.

The Initial Public Offering (IPO) consists of 100 million new ordinary shares and 50 millions offer for sale of existing shares at an IPO price of RM0.29 per share. 110 million shares will be for institutional investors, private placement & selected investors, 25 million shares made available for Malaysia Public and 15 million shares made available to the eligible directors and employees.

The IPO will raise about RM29 million in proceeds. Out of this, RM11 million is for construction of new factories, RM11 million will be use for purchase of new machineries and equipment, RM3.5 millions for working capital and the remaining RM3.5 million is for listing expenses.

Wegmans is involved in the design, manufacture and sale of home furniture products using a variety of solid wood and composite wood materials. Its customers are mainly wholesalers, retailers, chain stores and traders. It owns one manufacturing factory and rents another in Muar.

Most of its home furniture products are exported, and more than 90% of its revenue is from exports.

Currently, it is present in 75 countries, which include, Japan, US, Australia, Singapore, Korea, Canada, UK and other European countries.

Wegmans plans to increase its production capacity, further expand and diversify its customer base and increase its product range and develop new product designs.

More information regarding the company can be found in Wegmans Holdings Berhad webpage.

For the time being, Wegmans Holdings does not have any fixed dividend policy.

The table below is the financial summary of Wegmans Holdings.

FYE 2014 FYE 2015 FYE 2016 FPE 2016 FPE 2017
Revenue (RM’000)  39,416  66,216  85,636  64,111  63,372
Profit after Tax (RM’000)  2,982  12,951  15,301  11,487  11,556
Earnings per Share (sen)*  0.60  2.59  3.06  –
Price Earnings Ratio (x)*  48.63 11.20  9.48  –


* Based on number of shares post IPO
RHB Investment Bank is the principal adviser, sponsor, underwriter and placement agent of the IPO.

On the Moratorium on shares, the promoters of Wegmans Holdings IPO will not be able to sell, transfer or assign their entire shareholdings for a period of 6 monts from the date of listing. For the subsequent 6 months, the promoters must hold at least 45 percent of shares of the total number of shares issued. After that, the promoter may sell, transfer or assign up to maximum of 1/3 per annum of those shares held under moratorium.

For those who are interested in Wegmans Holdings IPO, you may subscribe at ATM machines or via Internet Banking.

The retail subscription period is opened until 22nd February 2018 at 5pm. Tentative balloting date is on 26th February while the allotment date is on 2nd March 2018. Wegmans Holdings stock name in Bursa Malaysia is “WEGMANS”.

View Wegmans Holdings prospectus in Bursa Malaysia webpage.

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