KUALA LUMPUR: Karex Bhd, the world's top condom manufacturer, will use the bulk of the amount raised from its listing exercise to double its output.
Karex is due to be listed on November 6.
Its initial public offering (IPO) will raise RM125.87 million from the sale of 67.5 million new shares priced at RM1.85 each.
This comprises an offer for sale of 27 million shares by existing shareholders and a public issue of 40.5 million new shares.
Its existing shareholders will pocket RM50 million while the remaining RM75 million via the public issue will go to Karex's coffers.
It has allotted 47.25 million of shares for institutional offering, while the remaining 20.25 million shares are for retail investors.
Its principal adviser RHB Investment Bank said the exercise has received strong demand from institutional investors in Malaysia, Singapore and Hong Kong.
Karex wants to double its annual production capacity to six billion pieces next year from three billion pieces presently.
This is achieved through a new plant in Pontian, which can produce two billion pieces of condoms, as well as expanding the existing ones in Hatyai, Thailand and Port Klang.
"We will spend 56 per cent, or RM42 million, to build a new plant at our Pontian site," its chief executive officer Goh Miah Kiat said.
The new factory is slated for completion by end of next year.
For the year ended June 30 2013, Karex registered a net profit of RM29 million on RM231 million revenue.
About 60 per cent of its revenue comes from the commercial market segment. Orders from institutional buyers and government agencies make up a 36 per cent share.
Sales under its own Carex brand account for the remaining four per cent.