Kuala lumpur: RT Pastry Holdings Bhd (RT Pastry) has signed an underwriting agreement with KAF Investment Bank Bhd for its initial public offering (IPO) and subsequent listing on Bursa Malaysia's ACE Market. The pastry and bakery products manufacturer is slated to list on the ACE Market by the second quarter of this year.

According to BERNAMA News Agency, the IPO involves the issuance of 91.54 million new ordinary shares, or 27 percent of the enlarged issued share capital. Of the total new shares, 16.96 million will be made available to the Malaysian public, while 6.78 million will be allocated to eligible directors, employees, and other contributors. A further 42.38 million will be placed out to private placement to identified Bumiputera investors approved by the Investment, Trade and Industry Ministry, and 25.42 million to institutional and selected investors.

Executive director and group chief executive officer Lu Chun-Neng stated that the IPO will provide a platform for the company to expand its retail network and upgrade manufacturing capabilities. He emphasized the importance of delivering quality products to both loyal customers and new investors.

The IPO proceeds are earmarked for several initiatives including the opening of new outlets, purchase of new machinery and equipment, and repayment of bank borrowings. These steps are intended to support the group's long-term growth and operational efficiency. KAF Investment Bank will serve as the principal adviser, sponsor, underwriter, and placement agent for the exercise.