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BWYS Group makes strong market debut KUALA LUMPUR: BWYS Group Bhd expects the positive outlook of the construction sector to continue driving its growth prospects. Group chief operations officer Ken Lau Ken Wah said this is underpinned by significant infrastructure expansion in the country. “There are also new data centre investments coming in, so the opportunities are there. Hence, we are very positive in terms of growth,” he said after the company’s listing yesterday.   Serving two main industries – building construction and warehousing and storage industries – the sheet metal product manufacturer and scaffolding supplier’s principal products are roofing sheets and trusses, industrial racking systems and welded pipes. The group is also engaged in the trading of steel materials and steel-related products. In the financial year ended Dec 31, 2023 (FY23), 95.6% of BWYS’ revenue was generated locally with the rest coming from export markets like the United States, Singapore, Indonesia, Australia, Bangladesh, the Philippines, the United Arab Emirates, Brunei and Kuwait.   Currently, the United States is the group’s largest export market. It is also a part of BWYS’ business strategies to expand and grow its business in various regions including South-East Asia, the Middle East and South America. “For our export markets, we are focused on industrial racking systems that already complies with the European standard. The majority of the export countries mentioned are using that standard, so we are looking at the opportunities there. “Our strategy is to sell our products to resellers to utilise their networks to gain access without needing to invest in resources and facilities in foreign markets,” Lau said. He added the group benefits from US tariffs and restrictions, which gives it a competitive advantage in the market. “When we sell to the United States, we act as an original equipment manufacturer for our US partners. They provide us with their patented designs, given that they have their own standards there and we will manufacture for them,” he said. BWYS raised RM56.4mil from the public issue of 256.30 million new shares. The company made its debut on the ACE Market of Bursa Malaysia yesterday, opening at 32 sen per share or 10 sen higher than its initial public offering (IPO) price of 22 sen per share. The opening volume was 33.9 million shares. The stock ended its maiden trading day at 35 sen, a premium of 13 sen or 59% over its IPO price of 22 sen. The share price hit a high of 36.5 sen and a low of 32 sen in intraday trade. The bulk of the proceeds raised or RM41.4mil is earmarked for capital expenditure. From this sum, RM22.8mil will be used for the construction of a new factory in Penang, another RM7.7mil will go towards the purchase of new machinery and equipment and RM10.8mil is for the implementation of a new enterprise resource planning system, production and inventory management systems. Apart from new production lines, the new factory will also house existing machinery and equipment for the industrial racking systems and roofing sheets and truss manufacturing operations. “The new factory serves two main functions. Firstly is the expansion of our production line for the polyurethane foam sandwich panel, and secondly is the new automated powder coating line for our industrial racking systems. “We have very limited warehouse space in our current facilities. The new site will increase our warehouse capacity by over 11 times, allowing us to have better inventory management,” Lau said. BWYS’ main input materials are steel-based materials including hot rolled steel coils and coated cold-rolled steel coils. In general, other than passing on the costs to consumers, Lau said the group mitigates costs by buying raw materials in a consistent manner. “We purchase our raw materials consistently, on a monthly basis. If we anticipate that prices are going to go up, we will buy more. If prices are expected to fall, then we will buy less. Hence, if you were to average it out, even if there is a spike, more or less, we are able to cover for it,” he said. source:https://www.thestar.com.my/business/business-news/2024/07/23/bwys-group-makes-strong-market-debut#:~:text=BWYS%20raised%20RM56.,volume%20was%2033.9%20million%20shares.

BWYS shares soar 65% in market debut KUALA LUMPUR: Sheet metal product manufacturer and scaffolding supplier BWYS Group Bhd’s shares surged more than 65% on its debut on the ACE Market of Bursa Malaysia, showing strong investor demand in the new stock despite a lacklustre market. The group, whose share offering to the Malaysian public was 48.51 times oversubscribed, raised RM56.4mil from its initial public offering (IPO).   BWYS shares began trading at 32 sen apiece as compared to its IPO Price of 22 sen. Subsequent strong buying interest took the share price to a high of 36.5 sen a share, representing a 14.5 sen increase over its IPO price of 22 sen.   As at 9.24am, there were 152.94 milion BWYS shares traded, making it the most actively traded counter on Bursa Malaysia on Monday. With the funding from the IPO, BWYS is set to expand its operations and boost production capacity with a new factory in Penang, covering a total built-up area of about 197,153 sq ft. Additionally, BWYS said it will acquire new machinery, including roll forming machines for the Banting factory and equipment for roof truss and industrial racking system manufacturing. Upon completion, the Penang factory will increase the company’s production capacity to 147,147MT and warehouse capacity to 150,231 sq ft. Rakuten Trade in its IPO note said it forecasts net earnings growth for BWYS given the expansion plans. “Given the expansion of capacity, the rollout of new products, and increasing demand for building materials, we foresee BWYS posting net earnings of RM22.3mil and RM27.6mil for FY24 and FY25, respectively,” it said. The research firm put out a “buy” call on the stock with a fair value of 40 sen a share based on a 15x price-earnings ratio over FY25 earnings per share. source: https://www.thestar.com.my/business/business-news/2024/07/22/bwys-shares-soar-65-in-market-debut  

ACE Market-bound BWYS aims to raise RM56.4mil from IPO From left: BWYS Group Bhd executive director Kang Yi Ki, BWYS managing director Kang Beng Hai, BWYS independent non-executive chairman Datuk Saidi Ismail, M & A Securities Sdn Bhd managing director Datuk Bill Tan and M & A Securities deputy head of corporate finance Danny Wong. KUALA LUMPUR: BWYS Group Bhd aims to raise RM56.4 million from its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia. The sheet metal products manufacturer and scaffoldings supplier said the IPO, scheduled for July 22, comprises a public issuance of 256.3 million new ordinary shares, representing 25 per cent of its enlarged share capital, as well as an offer for sale of 100 million existing shares, or 9.8 per cent of its enlarged share capital, by way of private placement to selected investors. “Based on the IPO price of RM0.22 per share and its enlarged issued shares of 1,025.2 million shares, BWYS’ market capitalisation upon listing is approximately RM225.5 million,” it said in a statement today, in conjunction with the launch of the company’s prospectus. Out of the 256.3 million issue shares, 51.3 million will be offered to the Malaysian public through a balloting process, 61.5 million to eligible directors, employees, and contributors of the company via pink form allocations, 128.2 million to Bumiputera investors via private placement, and 15.4 million to selected investors via private placement. BWYS managing director Kang Beng Hai said most of the IPO proceeds will be used to set up a new factory to expand its manufacturing facilities for sheet metal products. “In addition, we are purchasing new machinery and equipment including a new automated powder coating line as well as roll-forming machines and related equipment to improve our manufacturing capabilities for roof trusses and industrial racking systems,” he said. Kang said the company is also expanding its product range by venturing into the manufacture of polyurethane foam sandwich panels, which offer insulation from heat and noise, and also implementing information and communications technology systems to digitalise its production and inventory management processes to improve its production workflow. Following the prospectus launch, the company said the applications for the public issue are open from today and will be closed on July 5, 2024, at 5 pm. M&A Securities Sdn Bhd is the IPO’s principal adviser, sponsor, underwriter and placement agent. – Bernama source: https://www.thestar.com.my/business/business-news/2024/06/18/ace-market-bound-bwys-aims-to-raise-rm564mil-from-ipo