KUALA LUMPUR: Tyre retreading solutions provider, Eversafe Rubber Bhd which initial public offering (IPO) is up for the taking starting today, reported an audited profit of RM566,143 on the back of RM19.6 million, for the financial year ended 31 December 2016.
"Generally, our sales for the first half of the year will be slower as compared to the second half, due to the festive seasons and public holidays in both Malaysia and China," said the company in a statement posted to Bursa Malaysia.
"We generally see our sales picking up in the second half of the year. Other than this however, the group does not experience any other material seasonality or cyclical effects in sale."
The group also reported China as its main revenue contributor also for same period at RM10.7 million, followed by Malaysia at RM8.57 million and Japan at RM3.4 million.
Its IPO which is up for sale today involves the issuance of up to 78 million shares, 48 million of which will be public issues; 12.5 million will be for the Malaysian public; 11.5 million for eligible directors, employees and persons who have contributed to the success of Eversafe; and 24 million will be for institutional and selected investors by way of private placement.
The remainder is made up of an offer for sale of up to 30 million existing shares to institutional and selected investors (six million) and bumiputera investors (24 million).
The majority or 67.4 per cent of the proceeds to be raised will be used for investments in new manufacturing lines and manufacturing automation systems within two years.
Closing of IPO application is on April 10, with a tentative listing date on the ACE-markets on April 21.