Aerosol paint manufacturer to issue IPO

DPI Holdings has signed an underwriting agreement with Affin Hwang Investment bank for its initial public offering (IPO) on the ACE Market of Bursa Malaysia for January 2019, New Straits Times reports.

“Having built our in-house brands from scratch since 1982, we are definitely proud of our successes thus far, amassing a 300-colour product range, developing a broad channel of approximately 700 customers in Malaysia and counting local and international brands as our private label customers,” DPI executive chairman and managing director Peter Chai said in a statement to New Straits Times.

“With the underwriting agreement now complete, we are heading closer towards our IPO, which will propel us into the next stage of growth.”

The IPO includes a public issue of 126.5 million new shares, representing 26% of the group’s share capital.

From this, 24.3 million shares are open to the Malaysian public and 14.1 million shares for eligible directors, employees and individuals who have contributed to the group’s success.

Another 39.4 million shares are for private placement to identified investors and 48.7 million shares for private placement to bumiputera investors identified by the Ministry of International Trade and Industry (MITI).

“DPI has an experienced management team with an excellent track record in the aerosol paint industry for more than 30 years,” Affin Hwang Investment Bank managing director Datuk Maimoonah Hussain told New Straits Times.

“There are many opportunities to raise our market share in the aerosol paints market, in light of the potential uptrend from the automotive, arts and crafts, and DIY segments. We are proud to catalyse and be a part of their journey towards the listing on the ACE Market of Bursa Malaysia.”