KUALA LUMPUR (Nov 21): Automotive seat maker Feytech Holdings Bhd (KL:FEYTECH) has failed to buy a piece of land in the Klang Valley, resulting in a delay in the construction of its new corporate office with a manufacturing plant and warehouse.
Feytech said the delay mainly affects the relocation of its present corporate office in Petaling Jaya. “In view of the delay, the group has extended its current lease agreement for its existing office in PJ and its existing daily operations are unaffected.”
“Meanwhile, the proposed manufacturing plant and warehouse are to cater for its installation, repair and replacement of automotive seat covers and covers for its replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments, which are currently being served by its existing facilities located in PJ. The delay also does not affect other expansion plan of the group’s manufacturing operations of automotive seats and covers for its OEM segment, which is still on track,” it added.
In a filing with Bursa Malaysia on Thursday, Feytech revealed that it had submitted an expression of interest on the tender for the piece of land in the Klang Valley but was unsuccessful. It did not give further details.
“Thus far, the land found by the company does not meet its requirements to have a frontage facing a main road for its REM business and to have an estimated built-up area of 85,000 sq ft for the corporate office, manufacturing plant and warehouse,” it said, adding that it will continue to identify suitable land in the Klang Valley.
It is also seeking to extend the timeframe for the utilisation of its IPO proceeds.
On Wednesday (Nov 20), Feytech announced that its board of directors has decided to extend the timeframe for the use of its proceeds totalling RM114.66 million raised from the initial public offering (IPO) exercise in May this year. Of this total, RM21.13 million were allocated for the construction of the corporate office, manufacturing plant and warehouse. As at Nov 15, 2024, the group has utilised RM55 million from the total IPO proceeds.
The extension is not subject to approval by any regulatory authorities or the company’s shareholders.
Feytech shares closed down half a sen or 0.88% at 56.5 sen on Thursday, giving it a market capitalisation of RM472.4 million. The stock has fallen 48.64% so far this year.
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Source: EdgeProp.my
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