KUALA LUMPUR, May 20 (Bernama) — Dolphin International Bhd, headed for listing on the Main Market of Bursa Malaysia on June 9, will utilise more than 50 per cent of the RM31.28 million it expects to raise from its Initial Public Offering (IPO), for factory expansion and working capital.
The rest will be for establishing a research and development facility and repay bank borrowings, said Group Managing Director Eric Low Teck Yin.
He said the listing would place the company in a stronger position to tap into Malaysia and Indonesia’s huge palm oil milling machinery market.
There are over 439 mills in Malaysia and about 608 in Indonesia.
Dolphin International is involved in the design, development, fabrication and sale of palm oil machinery.
“We will concentrate on catering to the demand for process integration and automation solutions that enhance productivity, safety and efficiency, while improving our facilities in Shah Alam and Puchong as well as innovating new solutions for customers in both countries,” Low said.
He told reporters this after launching Dolphin International’s IPO prospectus here Wednesday.
Low said the company’s market share at present in the palm oil milling machinery sector was 3.2 per cent in Malaysia and 0.5 per cent in Indonesia.
The automation solutions for the palm oil milling machinery industry, he added, ensure production processes run in a more consistent manner.
Dolphin is issuing 46 million new ordinary shares of 20 sen each at an issue price of 68 sen per IPO share.
The public issue of 46 million new ordinary shares comprise 15 million IPO shares available for the Malaysian public and 8.25 million for the company’s group directors and employees.
It includes 22.75 million IPO shares for private placements, of which 2.5 million shares are for selected investors and 20.25 million for Bumiputera investors, approved by the Ministry of International Trade and Industry.