Homeritz Corporation Bhd, a Johor-based home furniture maker, is to spend RM9.12 million to set up factories in Vietnam and Muar, Johor, Malaysia, according to the Malaysian news agency Bernama.
Executive Director Tee Hwee Ing said RM3.4 million would be invested in its Vietnam plant including to buy new machinery and equipment.
"We are in the advanced stage of negotiations to lease two factory buildings in Binh Duong province. We hope to obtain regulatory approvals from the Vietnamese authorities by the second quarter of this year," she said.
The factories, expected to boost the company's output capacity by 24,000 sofa sets a year, will be fully operational by the second half of this year, she said, adding that RM5.72 million would be used to build the Muar plant.
The plant would be funded from proceeds of its initial public offering (IPO). The group is expected to be listed on the Main Market of Bursa Malaysia by next month.
"The Muar plant is expected to be completed in two years. Once completed, it is expected to increase the group's production capacity by another 15 per cent," she said at the company's prospectus launching Wednesday.
Tee said the new plant would take over production of its current rented factory, also in Muar. Currently, the company owns three factories.
Its IPO entails the public issue of nine million new ordinary shares and an offer-for-sale of 35.02 million vendor shares at 65 sen each IPO price.
Of the nine million new shares, eight million would be offered to the public and the remaining one million would be allocated to eligible directors, employees and business associates, she said.
Of the 35.02 million existing shares, 20 million units will be allocated to government-approved Bumiputera investors, 8.02 million shares will be placed out and the remaining seven million shares will be offered to the public.
Prior to the listing, Homeritz will undertake a renounceable rights issue of 10.10 million shares. Cumulatively, it will raise RM7.87 million in gross proceeds.
Source: dtinews.vn