KUALA LUMPUR: Healthcare furniture and equipment manufacturer LKL International Bhd is looking to raise RM22.6 million from its initial public offering (IPO) to fund capital expenditure and repay bank loans.

It plans to be listed on the ACE Market of Bursa Malaysia on May 16.

LKL International’s IPO entails the issuance of 113 million new ordinary shares at an issue price of 20 sen each.

Proceeds from the IPO will be used for capital expenditure (37.61%), repayment of bank borrowings (17.68%), working capital (33.65%) and listing expenses (11.06%).

Speaking to reporters after its prospectus launch yesterday, LKL International group general manager Lim Pak Hong said the capital expenditure will primarily be used to purchase computer numerical control (CNC) machinery to increase automation and lower dependency on human labour.

“We also have plans to amalgamate two separate properties to increase our storage area so we can fully utilise the extra space for our factory,” he said, adding that the amalgamation process will involve the current office building and warehouse space in Seri Kembangan, resulting in a combined two-acre office cum factory building.

Founded in 1993 by Lim Kon Lian and Mok Mei Lan, LKL International is principally involved in the provision of healthcare beds, peripherals and accessories to public and private hospitals, medical centres and healthcare facilities with a local market share of 40.5%, making them one of the largest manufacturers of healthcare furniture and products in Malaysia.