GB Bond Expects New Factory To Boost Adhesive Production By 35 Pct
KUALA LUMPUR, Oct 1 (Bernama) -- Water-based industrial adhesives and sealants manufacturer GB Bond Holdings Bhd expects its new factory in Penang to increase production capacity for its adhesive line by 30-35 per cent.
Malacca Securities Sdn Bhd senior vice-president of corporate finance, Darren Koh Chong Wooi said the company’s adhesive production facilities are currently operating at slightly above 70 per cent capacity.
"With our expansion into Vietnam, we expect new business opportunities from the market to grow gradually.
"We expect demand to strengthen over the next two to three years, which should lead to higher utilisation of the expanded capacity," he told a press conference after the company’s listing ceremony here today.
GB Bond made its debut on the ACE Market of Bursa Malaysia today at 25.5 sen, a premium of 0.5 sen from its initial public offering (IPO) price of 25 sen, with 19.74 million shares traded.
In a statement, the company said it has successfully raised RM16.08 million from its public issue.
Of the proceeds, RM5.50 million will be allocated to rent a new factory measuring approximately 40,000 sq ft near its Bukit Panchor headquarters in Penang, alongside the purchase of new production machinery.
"Alongside the factory expansion, RM0.90 million is earmarked for product formulation equipment.
"This investment will strengthen the group’s testing and analytical capabilities, supporting the development and refinement of customised adhesives tailored to specific industrial applications," it said.
GB Bond said RM3.50 million will be used to establish and support the operations of a local sales office in Vietnam, which is expected to be set up within six months of its listing.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
-- BERNAMA