Turbo-Mech Signs Underwriting Agreement For IPO

KUALA LUMPUR, March 26 (Bernama) -- Turbo-Mech Bhd, a regional distributor of rotating equipment for the oil, gas and petrochemical industries, which is enroute for a listing on Bursa Malaysia Securities Bhd in April, has signed an underwriting agreement with AmInvestment Bank Berhad.

Under the agreement, AmInvestment Bank will be the adviser, sole underwriter and sole placement agent for the initial public offering (IPO) exercise.

In a statement, Turbo-Mech said it would offer 18.068 million new ordinary shares of RM0.50 each at an issue price of RM0.63 per share.

The amount comprised six million shares to be made available for application by the Malaysian public, 7.568 million shares by way of private placement to selected investors and a further 4.5 million shares to be made available for eligible directors, employees and business associates of Turbo-Mech and its subsidiaries.

The bulk of the proceeds from the exercise, amounting to RM11.383 million, would be used for business expansion in Indonesia and Thailand, working capital and to finance day-to-day operations in those markets.

Turbo-Mech is a regional supplier of rotating equipment including centrifugal pumps, metering pumps, high pressure gas compressors, high pressure pumps, non-seal pumps, steam turbines, industrial cooling fans and spare parts.

As part of the listing scheme, Turbo-Mech acquired 42.5 per cent of the issued and paid-up capital of Bayu Purnama Sdn Bhd, a company which is involved in the sale of rotating equipment, spare parts, provision of maintenance and overhaul services.


Source: http://www.bernama.com/bernama/v5/newsbusiness.php?id=485684

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