KUALA LUMPUR (Oct 13): Readycare Holdings Bhd, the manufacturer of household care products and private labels for retail customers, is to float on the ACE Market of Bursa Malaysia.

The company said the money raised will be used for the construction of a new factory and purchase of new machineries and equipment.

It will also be used to fund the company’s brand and product development costs, and for general working capital requirements.

According to Readycare’s draft initial public offering (IPO) prospectus posted on the Securities Commission Malaysia’s website, 44.59 million new shares will be issued under the public issue.

Of this, 11 million shares will be made available to the Malaysian public and another 4.59 million shares for application by eligible directors and employees, as well as persons who have contributed to the success of the company.

The remaining shares will be offered via private placement, comprising 25.25 million shares for Ministry of International Trade and Industry-approved Bumiputera investors and 3.75 million for selected investors.

The IPO also comprises an offer for sale of 14 million shares by way of private placement to selected investors.

For the financial year ended 2020 (FY20), Readycare posted a higher revenue of RM70.1 million compared with RM54.78 million in FY19. The group recorded a revenue of RM99.81 million in FY18.

Readycare said its main source of revenue is the export market, which contributed 89.2%, 80.8 % and 77.4% to the group’s revenue for FY18, FY19 and FY20 respectively.

The company added that it intends to distribute a dividend of at least 20% of its consolidated profit after tax attributable to shareholders.

MIDF Amanah Investment Bank Bhd is the principal adviser for the IPO.

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