PETALING JAYA: Property outfit PRG Holdings Bhd ’s manufacturing arm has raised RM34mil in proceeds from its listing on the Hong Kong Stock Exchange (HKSE).

In a statement, the Main Market-listed company announced that its manufacturing subsidiary, Furniweb Holdings Limited, has been listed on the Growth Enterprise Market board of HKSE. The listing offered 126 million new share units at HK$0.50 apiece.

After deducting for underwriting fees and other expenses in relation to the listing exercise, Furniweb has net proceeds of HK$35.6mil (RM19.22mil) from its listing.

About 91% of the net proceeds has been earmarked for the construction of a new factory in Vietnam and acquisition of new machines. This was aimed to to expand the production capacity of Furniweb’s products, namely Narrow Elastic Fabric, Covered Elastic Yarn and Seat Belt Webbing.

“We believe the listing of Furniweb on HKSE will provide liquidity to both retail and institutional investors, leading to better price discovery for both shares of the newly listed company and PRG. We would like to thank our investors for their confidence in the management of Furniweb.

“I believe the strong demand for the subscription confirms a high level of confidence in our business strategy, strength of our unique offering, and great potential of our products within the market. We are committed to growing the company and seek to continuously enhance our shareholders’ value through the expansion of production capacity,” said Lua.

Note that, PRG will hold 75% stake in the enlarged share capital of Furniweb, following the listing exercise.

As at Sept 19, Furniweb has five production facilities in total, with three production facilities located in Malaysia.