Leform, MIDF Investment sign underwriting agreement for listing on Bursa’s ACE Market
On 21 September 2022, Leform Berhad entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd (MIDF Investment) in conjunction with its forthcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Leform and its subsidiaries are principally involved in the manufacturing and trading of steel products, particularly steel pipes, guardrails, and flat steel products. Supported by the Group’s wide range of steel product offerings, its products are catered to various end-user industries comprising the furniture industry, construction industry as well as industrial product manufacturing industry (which includes automotive parts and telecommunication tower pole part manufacturing).
Besides its primary market in Malaysia, the Group also exports its products to international markets such as New Zealand, Singapore and Cambodia.
Leform managing director Law Kok Thye said the IPO would expedite the company's expansion plans and enable it to tap into the equity capital market, granting it better financial flexibility to capitalise on future growth opportunities.
Leform’s IPO exercise involves a public issuance of 311.0 million new shares, representing 21.0% of its enlarged share capital, as well as an offer for sale of 74.1 million existing shares, representing 5.0% of the enlarged shares by way of private placement to identified institutional and/or selected investors.
Out of the 311.0 million new shares, 74.1 million shares will be made available to the Malaysian public via balloting; 29.6 million shares to its eligible directors, employees, and persons who have contributed to the success of the company; 22.2 million shares by way of private placement to selected investors; while the remaining portion of 185.1 million shares is reserved for Bumiputera investors approved by the Ministry of International Trade and Industry.
Leform is scheduled to list by November 2022, with MIDF Investment as the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.
