Main Market-bound Life Water Eyes Sarawak, Brunei Markets With RM63.42 Mln IPO

By Fatin Umairah Abdul Hamid

KOTA KINABALU, Oct 22 (Bernama) -- Sabah beverage manufacturer Life Water Bhd plans to use the proceeds of its upcoming listing on the Main Market of Bursa Malaysia to expand into Sarawak and Brunei.

Its managing director Liaw Hen Kong said the company is appointing distributors in Sarawak and Brunei as it aims to increase market penetration there by the end of 2025.

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"Additionally, we plan to expand our beverage portfolio by introducing a new range of flavoured drinks under the ‘Mandak’ brand, for which we have obtained trademark registration.

"This new product will be brought to market using our existing carbonated drinks production line at the Sandakan Sibuga Plant 1, catering to evolving consumer preferences," he said during a press conference after the launch of Life Water's initial public offering (IPO) prospectus today.

The company aims to raise RM63.42 million by issuing 97.56 million new ordinary shares at an IPO price of 65 sen apiece.

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According to its prospectus, based on the company’s enlarged share capital of 473.18 million shares at the IPO price, the company’s market capitalisation will be approximately RM307.57 million.

The company said about 84 per cent of the total proceeds will be allocated for business expansion purposes.

The largest portion, around 30 per cent, will be used to set up an additional drinking water manufacturing line at the Sandakan Sibuga Plant 1, 18.9 per cent for the purchase of a new drinking water line at Sandakan Sibuga Plant 2, and 19 per cent to establish a second distribution centre in Sandakan. About 15 per cent of the proceeds will be invested in expanding the existing plastic packaging facilities in Kota Kinabalu, 6.6 per cent will be allocated for working capital and 9.5 per cent to cover listing expenses.

With an 11 per cent market share in Malaysia’s bottled water market, Liaw said the company is set to expand further.

“With the new Keningau Plant becoming operational, (which) expected by December 2024, the capacity will increase to 448 million litres, including 37 million litres of carbonated drinks. We have done extensive marketing and branding for the existing Sabah markets, which will help us capture more consumer preference for our products due to our quality and affordability. Additionally, through the Keningau Plant, we will expand into the interior divisions of Sabah," he said.

Liaw noted that with tourism arrivals in Sabah increasing by about 24 per cent in the first half of 2024, and many direct flights from overseas, especially China, tourism will be a key factor driving demand growth.

The public portion of Life Water’s IPO will be available from today, and applications will close on Oct 30, 2024, at 5 pm. The company is scheduled to be listed on Nov 13.

MIDF Amanah Investment Bank Bhd is the principal adviser, underwriter, and placement agent for the listing exercise.

-- BERNAMA