KUALA LUMPUR: Furniture maker Wegmans Holdings Bhd plans to use proceeds from its initial public offering (IPO) to double its manufacturing capacity in Muar, Johor.
"We are channelling RM22 million to set up new factories, purchase new machinery and build hostels to house foreign workers," said Wegmans executive director Collin Law.
He went on to explain the new factories will be constructed in three phases along with new offices, showroom and workers hostel. The first phase is expected to be completed in the fourth quarter of 2019.
Wegmans' current factory capacity is able to produce up to 480,000 chairs and 190,000 tables. Upon the completion of phase one, production capacity will double to 960,000 chairs and 380,000 tables.
Wegmans' dining and living room sets appeal to the young and trendy as the furniture designers incorporate Nordic-inspired pastel-coloured clean lines.
"Our emphasis is on design and quality. We're a mid-sized manufacturer and we don't play the volume game. We produce in collections so that we can keep up with customers' changing needs," Law explained.
Also present at the company's IPO prospective launch were Wegmans managing director Keh Wee Kiet and RHB Investment Bank chief executive officer Robert Huray.
RHB Investment Bank is the principal adviser, sponsor underwriter and placement agent for Wegmans' listing on the ACE market on Bursa Malaysia.
Wegmans' IPO involves a public issue of 100 million new shares and an offer for sale of 50 million existing shares at 29 sen each. Wegmans said it is slated for listing on March 6, 2018.