Liftech targets RM23 million via IPO on ACE Market

Liftech Group Berhad is targeting to raise RM23 million through its Initial Public Offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia. The IPO is priced at 29 sen per share, which is expected to result in a market capitalization of RM91.3 million upon listing.

Managing Director Bernard Ng stated that the listing aims to strengthen the company's financial position and provide greater flexibility to support its long-term growth plans. Approximately RM13.8 million of the anticipated RM23 million will be allocated to repay bank loans previously taken out to finance the acquisition of strategic operational facilities in Bukit Minyak, Penang, and Kota Kinabalu, Sabah.

"The facilities in Bukit Minyak and Kota Kinabalu have strengthened our market presence and enhanced our ability to meet customer needs in key growth regions," Ng explained. "Therefore, repaying these loans will improve the company's financial standing and support future expansion plans."

Further allocation includes RM1.7 million for the purchase of new machinery and equipment for Liftech's factory in Taiping, Perak. This investment is expected to boost production capacity and increase automation in the company's manufacturing and renovation activities. An additional RM1 million will fund upgrades and renovations for the Taiping factory's facilities and office space, while RM2 million is earmarked for working capital, primarily for purchasing steel, components, and accessories used in manufacturing.

The remaining RM4.5 million from the IPO proceeds will cover listing expenses.

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The facilities in Bukit Minyak and Kota Kinabalu have strengthened our market presence and enhanced our ability to meet customer needs in key growth regions. Therefore, repaying these loans will improve the company's financial standing and support future expansion plans.