Kuala lumpur: Liftech Group Bhd aims to raise RM23 million through its initial public offering (IPO) for its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd on June 30, 2026. The industrial lifting and handling equipment specialist announced its plans in a statement today, highlighting its strategy to utilise the IPO proceeds for various financial and operational enhancements.
According to BERNAMA News Agency, Liftech plans to allocate RM13.8 million, or 60 per cent of the IPO proceeds, to repay bank borrowings. These borrowings were undertaken to finance the acquisition of operational facilities in Bukit Minyak, Penang, and Kota Kinabalu. Additionally, RM1.7 million will be used to purchase machinery and equipment for its Taiping factory, RM1.0 million for renovation and upgrading works, RM2.0 million for working capital, and RM4.5 million for estimated listing expenses.
The company's statement emphasized that the facilities in Bukit Minyak and Kota Kinabalu will play a crucial role in enhancing Liftech's presence in northern Peninsular Malaysia, Sabah, and Sarawak, thereby supporting its future growth plans. Managing director Bernard Ng noted that the repayment of borrowings would strengthen the company's balance sheet and provide greater financial flexibility. Ng highlighted that these facilities have bolstered Liftech's market presence and ability to serve customers across key growth regions.
Under the IPO arrangement, Liftech will issue 79.2 million new shares and offer 15.8 million existing shares for sale, which represent 25.2 per cent and 5.0 per cent of its enlarged share capital of 314.9 million shares, respectively. Among the new shares, 15.8 million will be available to the Malaysian public through balloting, 7.2 million to eligible directors and employees, 39.4 million to bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 16.8 million to selected investors via private placement.
At an IPO price of 29 sen per share, Liftech is projected to achieve a market capitalisation of RM91.3 million upon listing. The IPO subscription is open until June 16, with the company's listing on the ACE Market tentatively scheduled for June 30, 2026. MandA Securities Sdn Bhd is acting as the adviser, sponsor, underwriter, and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd serves as the corporate finance adviser.