KUALA LUMPUR: WTEC Group Berhad, a manufacturer of foam and non-foam products, has seen its initial public offering (IPO) oversubscribed by 1.61 times ahead of its debut on the ACE Market of Bursa Malaysia on 29 April 2025.
The IPO, which includes a public issue of 90.2 million new ordinary shares at RM0.25 per share, is expected to raise RM22.5 million. The company also offered 43.2 million existing shares via private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
A total of 2,055 applications were received from the Malaysian public for 62.69 million shares valued at RM15.67 million, significantly exceeding the 24.0 million shares allocated. All 9.6 million shares set aside for eligible directors, employees, and contributors were fully subscribed, while private placements for the remaining shares were also fully taken up.
Group Managing Director Mr. Tan Kok Kheng expressed optimism over the positive market reception. “The strong demand reflects investor confidence in our business fundamentals and growth trajectory,” he said. “Proceeds from the IPO will support the acquisition of a new manufacturing facility and additional machinery, enhancing our production capabilities and operational efficiency.”
With more than 20 years of industry experience, WTEC Group serves a wide range of sectors including automotive, electrical and electronics, medical, personal protective equipment, and construction, with reach across Malaysia, Vietnam, Thailand, Australia and beyond.
Upon listing, the company will have a market capitalisation of RM120 million, based on the issue price and an enlarged share capital of 480 million shares.
Alliance Islamic Bank Berhad is acting as the Principal Adviser, Sponsor, Sole Underwriter, and Placement Agent for the IPO.
