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Friday, November 15th, 2019

Pecca Group makes strong debut on Bursa

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by April 20, 2016 General
The company was founded by Datuk Teoh Hwa Cheng in December 2000 and is mainly involved in the styling, manufacturing, distribution and installation of leather upholstery of car seat covers, as well as the supply of leather cut pieces to the automotive leather upholstery industry.

The company was founded by Datuk Teoh Hwa Cheng in December 2000 and is mainly involved in the styling, manufacturing, distribution and installation of leather upholstery of car seat covers, as well as the supply of leather cut pieces to the automotive leather upholstery industry.

PETALING JAYA: Car leather upholstery maker Pecca Group Bhd raised close to RM130mil in total gross proceeds from its initial public offering (IPO) debut on the Main Market of Bursa Malaysia yesterday.

Its shares gained 29 sen or 20.42% at the market close on its first day to RM1.71 yesterday, above its IPO price of RM1.42.

Its total gross proceeds of about RM129.4mil comprise the public issue of RM67.87mil and offer for sale of RM61.53mil, based on its IPO price of RM1.42 per share.

At the close, 59.6 million shares changed hands.

Its shares for the Malaysian public were oversubscribed by 13.11 times.

There were 8,047 applications for 132.64 million shares received for the 9.4 million shares available for public subscription at RM1.42 per share.

It also undertook a private placement of 53.53 million shares to selected investors.

From the RM67.87mil to be raised from the issuance of 47.79 million new shares, Pecca will use RM26.97mil or 39.74% of the proceeds as working capital.

Another RM17.1mil will be used to repay bank borrowings and RM7.55mil to purchase new machinery to produce car leather seat covers.

Pecca will utilise RM5mil to expand its production area, and another RM5mil for listing expenses.

After the listing exercise and placement exercise, Pecca’s enlarged issued and paid-up capital will increase to 188 million shares from 140.2 million shares previously.

Pecca plans to increase its production capacity by an additional 50,000 sets of car seat covers to 170,000 annually.

The company was founded by Datuk Teoh Hwa Cheng in December 2000 and is mainly involved in the styling, manufacturing, distribution and installation of leather upholstery of car seat covers, as well as the supply of leather cut pieces to the automotive leather upholstery industry.

Its unit Pecca Leather Sdn Bhd’s products and services are catered for the original equipment manufacturer segment, the pre-delivery inspection segment and the replacement equipment manufacturer segment within the automotive upholstery industry.

Pecca sells its products locally and exports to countries such as the United States, Netherlands, Thailand, Australia, Japan, New Zealand, Singapore, Indonesia, United Kingdom and Mauritius.

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