Company Background

The Company was incorporated in Malaysia on 14 January 1995 as a private limited company under the name of Leform Sdn Bhd. On 14 January 2022, the Company converted into a public company and assumed the name Leform Berhad.

The Group structure before the IPO is set out below:

Use of proceeds

1. Construction of new headquarters, warehouse storage facility, and workers’ accommodation - 42.0% (within 18 months)
2. Repayment of bank borrowings - 20.1% (within 10 months)
3. Working capital - 30.6% (within 12 months)
4. Estimated listing expenses - 7.3% (within 3 months)

Construction of new headquarters, warehouse storage facility, and workers’ accommodation - 42.0% (within 18 months)

The Group intends to allocate approximately RM30.0 million from the IPO proceeds towards the construction of a new facility which is envisaged to comprise a 4-story office building, 2 units of the 2-story warehouse storage facility, and a 5-story workers’ accommodation.

The breakdown of estimated costs and timeframe for the construction of the new facility is set out as follows:

Repayment of bank borrowings - 20.1% (within 10 months)

As at the LPD, the outstanding total bank borrowings stood at RM198.61 million, comprising amongst others the following term loans being all the outstanding term loans obtained before 2021, which they intend to repay using the IPO proceeds. The company plans to repay the outstanding term loans as they have long-term tenure. The other facilities such as hire purchase facilities and trade facilities are short-term in nature.

Working capital - 30.6% (within 12 months)

The company expects the working capital requirements to increase in tandem with the expected growth in scale of the operations from anticipated growth in demand for steel products. In addition, as the global steel price is expected to rise, they require more funds to purchase the materials. As such, the company has allocated approximately RM21.9 million from its IPO proceeds toward the working capital requirements, which include the following:

Business model

The Group is principally involved in the following business segments:

(i) manufacturing of steel products; and

(ii) trading in steel products.

The following diagram illustrates the Group’s business model:

Click here to continue the IPO - Leform Berhad (Part 2)

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedback coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks.

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Facebook: https://www.facebook.com/mqtrader

Instagram:https://www.instagram.com/mqtrader

i3messanger: https://messenger.i3investor.com/m/chatmq

YouTube: https://www.youtube.com/channel/UCq-26SGjlQTVQfO7DoEihlg

Email: admin@mqtrader.com

​