GB Bond expects new factory to boost adhesive production by 35pct
KUALA LUMPUR: 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.
KUALA LUMPUR: Industrial adhesive and sealant maker GB Bond Holdings Bhd anticipates its newly constructed factory in Penang will raise its production output by 30-35 per cent. Malacca Securities Sdn Bhd senior vice-president of corporate finance Darren Koh Chong Wooi disclosed that the company's existing adhesive production facilities currently function at a rate slightly exceeding 70 per cent capacity.
The company anticipates the Vietnam market to generate incremental business prospects as it expands there. Mr. Koh stated this during a press conference following the company's debut on the ACE Market of Bursa Malaysia. GB Bond listed today at 25.5 sen, a price 0.5 sen above its IPO price of 25 sen, with a trading volume of 19.74 million shares.
The company raised RM16.08 million from the public issue, with RM5.50 million designated for leasing a new factory of approximately 40,000 sq ft near its Bukit Panchor headquarters in Penang, and the acquisition of new production equipment. An additional RM900,000 will be allocated for product formulation equipment. This funding will enhance the group's testing and analytical capacities, aiding in the creation of custom adhesives suited for specific industrial uses.
RM3.50 million will be utilized to establish and maintain a local sales office in Vietnam, which is projected to commence operations within six months of the company's listing. Malacca Securities serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO.
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