Kuala Lumpur, November 5 – Aerosol paints producer DPI Holdings Berhad (DPI, the Group) has executed an underwriting agreement with Affin Hwang Investment Bank Berhad – its principal adviser, sponsor, underwriter, and placement agent – for its proposed initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Berhad.
The Executive Chairman & Managing Director of DPI, Mr Peter Chai @ Choy Mui Seng said, “Having built our in-house brands from scratch since 1982, we are definitely proud of our successes thus far: amassing a 300-colour product range, developing a broad channel of approximately 700 customers in Malaysia and counting local and international brands as our private label customers. With the underwriting agreement now completed, we are now heading closer towards our IPO which will propel us into the next stage of growth,” at the signing ceremony of the underwriting agreement. Also present at the ceremony was DPI Deputy Managing Director, Adam Chai.
Affin Hwang Investment Bank Berhad was represented by Group Managing Director, Datuk Maimoonah Hussain, who noted that “DPI has an experienced management team with an excellent track record in the aerosol paint industry for more than 30 years. We believe the Group has much opportunity to stake a greater claim in the aerosol paints market, in light of the potential uptrend from the automotive, arts and crafts, and DIY segments. We are proud to catalyze and be a part of their journey towards the listing on the ACE Market of Bursa Malaysia.”
The proceeds of the IPO will be predominantly utilized for DPI’s expansion plans via the construction of a new factory and upgrading of production lines to be fully automated. Other growth strategies also include extending their consumer reach through an increasing online presence and developing new product ranges.
DPI’s IPO entails a public issue of 126.5 million new shares, representing 26.0% of the Group’s enlarged share capital. Of the 126.5 million shares, 24.3 million shares will be for application by the Malaysian public and 14.1 million shares for application by eligible directors, employees and persons who have contributed to the success of the Group. Meanwhile, 39.4 million shares are allocated for private placement to identified investors and 48.7 million shares for private placement to Bumiputera investors identified by the Ministry of International Trade and Industry.
Barring unforeseen circumstances, DPI targets to be listed in January 2019.
For more information, please contact:
· Robitahani Zainal
+603 2191 1044
· Lim Juen Quan (JaQ)
+603 2191 1108