Furniture company Mobilia to issue 100m shares for ACE Market listing

PETALING JAYA: Furniture designer and manufacturer Mobilia Holdings Bhd is looking to list on the ACE Market of Bursa Malaysia, with a public issue of 60 million new shares, and offer for sale of 40 million shares by way of private placement to selected bumiputra investors.

Under the public issue, 20 million new shares will be made available to the Malaysian public, 12 million new shares to eligible employees and persons who have contributed to its success and 28 million new shares for selected investors through private placement.

The Johor-based furniture company disclosed that the proceeds raised from the listing will be used towards the construction of the subsequent phase of its new factory premises which was completed in January this year.

It said that this will be used for the construction of office and showroom as well as the construction of two blocks of single-storey factory buildings within 24 months from its listing.

Aside from that, the group has allocated the proceeds from the listing for the purchase of machinery within 24 months of the exercise, working capital within one month and to defray the listing expenses.

Looking ahead, Mobilia intends to continue to expand its range of home furniture through continuous design and development efforts, while also expanding its customer base and export markets by participating in trade exhibitions and events.

For the financial year ended Dec 31, 2019, the group reported a revenue of RM75.59 million and a profit after tax of RM8.42 million.

However, it expects its performance for FY20 to be lower, owing to the disruption of business caused by the movement control order and the interruption of overseas business transactions caused by the pandemic.

“As we have a large export base, the pandemic had also affected our business transactions overseas. Our business and operations, especially the delivery of products to overseas customers, were also impacted by precautionary measures taken by governments of these countries, such as closure of logistics hubs, to curb the spread of the Covid-19 virus.

“Our sales and marketing activities were also affected by the Covid-19 pandemic as several furniture fairs and exhibitions being our key sales and marketing activities, have been postponed or cancelled entirely,” it said.

source https://www.thesundaily.my/business/furniture-company-mobilia-to-issue-100m-shares-for-ace-market-listing-YX3176760