Kuala Lumpur, April 17: Synergy House Berhad, a company engaged in cross-border e-commerce and exports of ready-to-assemble (RTA) home furniture, has signed an underwriting agreement with Kenanga Investment Bank Berhad (Kenanga IB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).
The approval for admission to the Official List and listing of its shares on the ACE Market of Bursa Securities has already been obtained by the Group.
The IPO exercise will offer a total of 130 million shares, including a public issue of 80 million new shares that represent 16 per cent of the enlarged issued share capital.
These shares will be allocated to the Malaysian public, eligible directors, employees, persons who have contributed to the Group, selected investors through private placement, and Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
The underwriting agreement with Kenanga IB covers the public issue of 25 million new shares and the 12.5 million existing shares offered to eligible persons.
According to Tan Eu Tah, Executive Director of Synergy House, the signing of the underwriting agreement is a crucial milestone that brings the company closer to becoming a listed entity.
Since 2004, the company has focused on the design, development, and sales of RTA home furniture and outsources all manufacturing works to third-party manufacturers.
The IPO will provide the necessary capital to expand the company’s business model.
Teh Yee Luen, another Executive Director of Synergy House, mentioned that the funds raised through the IPO will allow them to grow their business-to-consumer (B2C) segment.
The sales of their B2C segment have increased from RM1.99 million in 2019 to RM24.78 million in 2021, representing a compound annual growth rate of 252.88 per cent.
Part of the IPO proceeds will be utilised to purchase inventories for the B2C segment and implement e-commerce advertising and promotion strategies.
Kenanga IB, as the Principal Adviser, Sponsor, Underwriter, and Placement Agent, expressed its gratitude to Synergy House for having them onboard for the IPO exercise.
They believe that the company will be able to leverage its design and development capabilities to expand its business further through the listing.
They wished the company success in its future endeavours.
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