Qualampur: WTEC Group BHD, a manufacturer and traders of foam and non-fomm products, are intensifying their development trajectory with the purchase and renewal of a new manufacturing facility.
The expansion creates a main part of the company’s strategy to enhance its operational ability and efficiency, supported by the money raised from its initial public offering (IPO) on the Ace Market of Barsa Malaysia.
The WTEC group’s IPO involves the release of a public of 90.2 million new ordinary shares, which represents 18.8% of its increased share capital, with a proposal for the sale of 43.2 million existing shares or 9%. At an IPO price of 25 Sen per share, the company is expected to have a market capitalization of RM120 million on listing. The WTEC group is going to debut in the Ace market on 29 April.
The WTEC group aims to raise RM22.5 million from IPO, of which RM9.425 million (41.8%of total income) is placed for acquisition and renewal of a ready-made-made factory.
The group’s managing director Tan Coke Kheng said that the facility acquired in Kajang or Seminih, the company would allow the company to strengthen several operations under a roof, streamline production workflows and house advanced machinery.
“The new feature is a strategic step that will enable us to enhance our production capabilities, adapt operations, and meet the growing demand from both local and international customers. We plan to start operations in the new factory by the second quarter of 2026. This expansion is a parade for our commitment to our commitment to the company’s IPOIS primepects to launch.
Tan said that WTEC currently operates from three rented factories. Innovation in single manufacturing hub is expected to improve management control, quality inspection and material handling significantly. “Currently, our heavy materials have to be transported among different sites, which are time consuming and disable. With this new factory, we aim to centralize operations and improve overall productivity.”
In addition to factory investment, the WTEC group will channel the RM3 million (13.3%) of the IPO, which to increase its automation capabilities towards the purchase of new machinery and equipment, to reduce dependence on manual labor and increase the quality of the product.
Other allocation includes RM1 million (4.4%) for sales and marketing expenses, RM5.1 million (22.7%) for working capital, and RM4 million listing-related expenses (17.7%).
Established two decades ago, the WTEC group has created a solid reputation in many industries including motor vehicle, electrical and electronics (E & E), construction, medical and personal safety equipment. The group serves customers in Malaysia and exports to markets such as Vietnam, Australia and Thailand.
WTEC’s financial performance reflects its flexibility and speed of development. Revenue from RM43.1 million in the financial year ended up to RM52 million in FY24 from December 31, 2021 (FY21), which translates to an annual growth rate of more than 6.5%.
Meanwhile, the benefits after tax exceeded double in the same period, increased from RM3.5 million to RM8.2 million.
In FY24, the manufacture of FOAM products contributed 65.7% of the total revenue, followed by 15.9% from non-Foam products, while the business of polyurethane foam and other related materials increased by 18.4%.
Tan said, “With a strong foundation and broad industry experience, we are confident in our ability to capitalize on further opportunities, especially in the motor vehicle and E&E areas, where the demand for high-demonstration materials is increasing.”
