IPO: Muah Ban Lee Group Bhd

Muah Ban Lee Group Bhd (MBL), a company specialising in oil seed crushing machinery expects to raise RM13.65 million from the initial public offering (IPO).

RM3 million from the proceeds would be used to purchase new machinery and RM1.5 million to establish new service offices in Indonesia, Papua New Guinea as well as Nigeria.

Another RM2.5 million will be used to pay borrowings, RM500,000 for research and development and RM4.35 million for working capital, while about RM1.8 million is for listing expenses.

With a more than RM41 million confirmed order book currently, the company is confident of achieving an annual 14 per cent growth in turnover next year (2010).

For the financial year ended Dec 31, 2008, Tan said the group recorded a profit after tax of RM8 million on the back of RM41.368 million in revenue.

Indonesia is its bigger market and we looking to increase market share there in line with growing demand.

Currently, the group exports its products and services to more than 150 customers in 22 countries worldwide.