WTEC Group Acquires Semenyih Industrial Property to Centralise Manufacturing Operations

WTEC Group Bhd is acquiring an industrial factory complex in Semenyih, Selangor for RM10.80 million as part of its strategy to consolidate its manufacturing operations into a single integrated facility.

In a filing with Bursa Malaysia, the ACE Market-listed company said its wholly-owned subsidiary, WTEC Sdn Bhd, had signed a sale and purchase agreement (SPA) with Athens Park Machineries Sdn Bhd for the acquisition of a factory complex located at Bandar Rinching, Semenyih.

The industrial property consists of a three-storey office building attached to a single-storey warehouse and ancillary facilities. The site occupies approximately 4,038 sq m (43,465 sq ft) of land area, with a gross floor area of around 2,471 sq m (26,605 sq ft). The six-year-old property was independently valued at RM10.80 million on April 24, 2026.

WTEC Group said the acquisition will be financed through a combination of RM9.42 million from IPO proceeds allocated for factory acquisition and RM1.38 million from internally generated funds. The company was listed on the ACE Market on April 29, 2025, with Alliance Islamic Bank Bhd acting as sponsor.

According to the company, the acquisition aligns with the expansion strategy outlined in its IPO prospectus, which highlighted plans to streamline operations currently spread across four separate manufacturing facilities into one centralised location.

The Semenyih property is strategically located within an established industrial zone with access to major highways including the Kajang-Seremban Highway, SILK Highway and Cheras-Kajang Expressway. The site is situated about 40km southeast of Kuala Lumpur and approximately 18km from Kajang.

The current tenant, Premmega Construction Sdn Bhd, is expected to vacate the premises by Aug 20, 2026, enabling WTEC Group to take possession for operational use. The acquisition is targeted for completion by the third quarter of 2026.

The company noted that shareholder approval is not required for the acquisition, as the highest percentage ratio applicable under the ACE Market Listing Requirements stands at 18.33%, based on the purchase consideration relative to the group’s latest audited net assets.

What I Learned

• WTEC Group is using part of its IPO proceeds to acquire a dedicated manufacturing facility in Semenyih.
• The acquisition supports operational consolidation, allowing the company to combine four manufacturing sites into one centralised factory.
• Industrial properties with strong highway connectivity remain attractive for manufacturing and logistics operations in Selangor.
• The factory acquisition reflects how recently listed companies are deploying IPO funds to strengthen operational efficiency and long-term scalability.
• The deal structure shows a balanced funding approach using both IPO proceeds and internally generated funds.
• The transaction does not trigger shareholder approval requirements as it falls within the regulatory percentage thresholds under ACE Market rules.