kuala lumpur: WTEC Group Bhd, a manufacturer and trader of FOAM and non-form products, is accelerating its growth trajectory with the purchase and renovation of its new manufacturing facilities.
This expansion forms a central part of the company’s strategy to increase operational capabilities and efficiency, backed by funds raised from early public offerings (IPOs) in the ACE market in Bursa Malaysia.
The WTEC Group’s IPO consists of public issuances of 90.2 million new common stock, accounting for 18.8% of the expansion of share capital, and consists of offers to sell 43.2 million shares or 9% of existing shares. At an IPO price of 25 sen per share, the company is expected to have a market capitalization of Rs 120 crore at the time of listing. The WTEC Group is scheduled to debut in the ACE market on April 29th.
The WTEC Group aims to raise RM22.5 million from the IPO. Of this, RM9.425 million (41.8% of total revenue) has been allocated for the acquisition and renovation of ready-made factories.
Group Managing Director Tan Kok Kheng said the facility being acquired at Kajang or Semenyih will allow the company to integrate multiple operations under one roof, streamline production workflows and allow house advanced machines.
“The new facility is a strategic move that will expand production capacity, optimize operational efficiency and meet increased demand from both local and international clients. We plan to begin operations at the new plant by the second quarter of 2026.
Tan said WTEC is currently operating from three rental factories. Integration into a single manufacturing hub is expected to significantly improve management control, quality monitoring, and material handling. “Currently, our bulky materials need to be transported between various time-consuming and inefficient sites. This new factory aims to centralize operations and increase overall productivity.”
Apart from factory investment, the WTEC Group will channel RM3 million (13.3%) towards the purchase of new machines and equipment to enhance automation capabilities, reduce reliance on physical labor and improve product quality.
Other allocations include RM1 million (4.4%) of sales and marketing expenses, R5.5 million (22.7%) of working capital, and RM4 million to cover listing-related expenses (17.7%).
Founded more than 20 years ago, WTEC Group has built a strong reputation in multiple industries, including automotive, electronics, electronics (E&E), construction, medical and personal protective equipment. The group serves Malaysian clients and exports to markets such as Vietnam, Australia and Thailand.
WTEC’s financial performance reflects its resilience and growth momentum. Revenues rose from RM43.1 million for the fiscal year ended December 31, 2021 to RM52 million for fiscal year 2024, converting to a combined annual growth rate of over 6.5%.
Meanwhile, post-tax profits more than doubled over the same period, increasing from RM3.5 million to RM8.2 million.
In 2024, the production of foam products contributed 65.7% of total revenue, followed by 15.9% from non-foam products, while transactions in polyurethane foams and other related materials accounted for the remaining 18.4%.
“Because of its strong foundation and extensive industry experience, we are confident in our ability to take advantage of future opportunities, especially in the automotive and E&E sectors where demand for high-performance materials continues to grow.”
