KUALA LUMPUR: Automotive leather upholstery supplier, Pecca Group Bhd is set to raise gross proceeds of RM129.4 million through its Initial Public Offering (IPO) comprising both public issue and offer for sale at RM1.42 per share.

Of that, the group is looking to raise RM67.8 million in proceeds from the public issue of 48 million new shares, alone.

The group plans to put 40 per cent of the proceeds towards working capital, 25.2 per cent into repayment of bank borrowings and 18.5 per cent for the purchase of new machinery as well as expansion of the firm's production floor.

The balance will be allocated accordingly for the opening of retail stores to sell the group's proprietary products namely the SmartFit and QuickFit car covers, establishing the firm's presence in Thailand as well as branching into the leather aviation services segment.

The closing date for the public to subscribe to the IPO is April 5, 2016.

Pecca Group aims to list on the Main Market of Bursa Malaysia Securities Bhd on April 19, 2016.