KUALA LUMPUR: Bakery specialist RT Pastry Holdings Bhd has signed an underwriting agreement with KAF Investment Bank Bhd for its initial public offering (IPO) on the Ace Market of Bursa Malaysia.

RT Pastry specialises in the manufacturing and retail of premium pastry and bakery products, operating over 17 outlets in the Klang Valley.

The IPO entails a public issue of 91.5 million new shares, representing about 27 per cent of the company's enlarged share capital.

RT Pastry said 16.9 million of the new shares will be allocated for the public, 6.7 million shares for eligible persons of the company and 42.3 million shares for the private placement to Bumiputera investors approved by the Investment, Trade and Industry Ministry.

The remaining 25.4 million shares will be reserved via private placement to institutional and selected shareholders.

RT Pastry executive director and group chief executive officer Lu Chun Neng said the IPO will provide it with the platform to further expand its retail network and upgrade its manufacturing capabilities.

RT Pastry plans to use the listing proceeds for the opening of new outlets, acquisition of new machinery and equipment as well as repayment of bank borrowings.

KAF Investment is the principal adviser, sponsor, underwriter and place agent for the exercise.