Eversafe expanding into South America
Retreading solutions provider Eversafe Rubber has outlined plans for expansion beyond the Asean region once it has completed its current initial public offering (IPO), with South America identified as a target.
The company has released a draft prospectus describing potential investment in South America, following its first moves into Brazil this year. Plans include trademarking its brand in several regions, including South America.
The company is issuing up to 78 million shares in its IPO. Of these 48 million are public issues: 12.5 million for the Malaysian public; 11.5 million for directors and employees; and 24 million for institutional and selected investors, via private placement.
The majority of the forecast proceeds are to be used for investments in new manufacturing lines and manufacturing automation systems within two years, according to the company’s prospectus. Options for presence in South America include either setting up representative offices and a warehouse, or working with local distributors to help market and service its customers in South America.
The company is also looking at the feasibility of forming a joint venture with its South American customers to establish a tyre retreading plant there in 2017.