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Pecca Group listing: Minister in the Prime Minister’s Department Dr. Wee Ka Siong, Pecca Group non-exec director Leong Kam Weng, ED Sam Yin Thing, ED Sam Chee Keng, chairman Mohamed Suffian Awang, ED Tan Jin Sun and group MD Teoh Hwa Cheng.

Read more at: http://www.dealstreetasia.com/stories/37966-37966/

Automotive leather upholstery supplier Pecca Group Bhd has successfully raised gross proceeds of MYR129.4 million in its initial public offering on Bursa Malaysia.

The listing, on Tuesday, saw a positive opening price of MYR1.71, 20.4 per cent higher than its issue price of MYR1.42.

It is the fourth listing in the Malaysian market this year, and the second to have made a positive debut. Building materials supplier Chin Hin Group Bhd, the first listing for the year, recorded a 24.6 per cent jump in its opening price of MYR0.81 from the issue price of MYR0.65, in March.

Pecca’s initial public offering (IPO) involved a offer for sale of 43.33 million existing shares as well as a public issue of 47.80 million new shares. Its public portion was oversubscribed by 13.11 times.

The MYR67.87 million raised from the public issue will be utilised to further grow and expand Pecca and its subsidiaries businesses.

The group will allocate 40 per cent of the proceeds towards working capital, 25.2 per cent into repayment of bank borrowings and 18.5 per cent for the purchase of new machinery as well as expansion of the firm’s production floor.

The balance will be channelled into the setting up of retail stores to sell the group’s in-house proprietary products, the SmartFit and QuickFit car covers; establishing the firm’s presence in Thailand; and branching into the leather aviation services segment.

Executive director Tan Jin Sun said the group has secured a licence from the Department of Civil Aviation Malaysia (DCA) for the refurbishment of aviation passenger seats and is pending approval for leather upholstery.

“We have completed a project for a private jet, but have not done any commercial aircraft yet,” he said, noting that the group will need the DCA licence to work on commercial aircraft.

“We are very focused on OEM and PDI segments. We see a lot of room to grow our market share, by venturing into the retail industry. We plan to set up close to 50 concept outlets nationwide,” he added. OEM and PDI segments make up 72.7 per cent of the group’s revenue, according to its prospectus.

Pecca is the largest leather upholstery supplier for the original equipment manufacturer (OEM) and pre-delivery inspection (PDI) passenger vehicle segment in Malaysia since 2013.

Its 2015 numbers reflect an ownership of 67.7 per cent market share.

Its revenue is 88.71 per cent generated from local sales, while the remaining comes from exports to markets like Netherlands, Australia, Singapore, USA< New Zealand, UK, Mauritius, Japan, Thailand and Maldives.

AmInvestment Bank Bhd is the principal adviser, joint underwriter and joint placement agent for the exercise, while Hong Leong Investment Bank Bhd is the joint underwriter and joint placement agent.

PECCA (5271) - Pecca Group debuts firmly on Bursa Malaysia, 20% north of issue price
http://www.dealstreetasia.com/stories/37966-37966/
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