Industrial property builder ETA World eyes ACE Market listing

KUALA LUMPUR (June 3): Industrial property builder ETA World Group Bhd is seeking a listing on the ACE Market of Bursa Malaysia.

The proposed initial public offering (IPO) will consist of a public issue of 111.9 million new shares, or 26.03% of its enlarged share capital after the IPO of 429.92 million shares, according to the group’s prospectus exposure on Bursa Malaysia.

The IPO price has yet to be fixed.

ETA World said 21.496 million new shares will be made available for application by the Malaysian public and 1.8 million new shares will be available for application by eligible directors and employees of the group.

Meanwhile, 34.86 million new shares will be made available by way of private placement to selected investors, and another 53.74 million new shares to selected bumiputera investors approved by the Ministry of International Trade and Industry.

According to the ETA World, the group is an industrial property builder offering total turnkey solutions for its design and build business that specialises in industrial buildings such as factories and warehouses for its customers in Malaysia.

“Our design and build businesses currently focus on the small and medium-sized projects only, with project values ranging between RM2 million to RM14 million.

“We are also involved in the trading of building materials, which are supplied to our design and build projects, as well as external customers, such as retail-based and project-based customers,” it added.

ETA World posted a revenue of RM65.09 million for the financial year ended 2021 (FY21), RM65.38 million for FY20, and RM57.69 million for FY19.

Proceeds from the listing exercise are to be utilised for the acquisition of two plots of land in Mukim Kapar, constructing a factory in Kapar Bestari Industrial Park, funding the construction of investment property in Kuala Selangor, and purchasing machineries and equipment to set up precast concrete fabrication capacity.

ETA World also noted that the proceeds are to be used for working capital and estimated listing expenses of the exercise.

ETA World said it does not have any formal dividend policy.

Source : The Edge Markets