Malaysian security seal specialist Mega Fortris Bhd has abandoned a plan to establish a playing card manufacturing plant in Macau, with funds previously generated via an Initial Public Offering (IPO) to instead be used to expand the printing output of its manufacturing line in Malaysia.
The group will, however, set up a warehouse in Macau where cards produced in Malaysia will be pre-shuffled, placed into security boxes and delivered to local customers, according to information contained in a filing.
Mega Fortris had in late 2024 announced plans to establish two separate printing lines – one each in Malaysia and Macau – utilizing MYR99.1 million (US$24.5 million) in proceeds raised from its IPO. This was to include the purchase and installation of specialized machinery and equipment at the group’s premises in Malaysia, and at the premises of a subcontractor in Macau that would be tasked with providing and renovating the premises in question as well as carrying out the production process and obtaining relevant licences and approvals.
Mega Fortris previously announced V.S International Group Limited as its Macau subcontractor, with the two companies signing an MOU.
In a Tuesday filing, Mega Fortris revealed that it the parties have now terminated the MOU and that MYR50 million in proceeds previously assigned to establishing the Macau manufacturing plant would be reassigned to expansion of the Malaysian plant.
In doing so, the company said it would increase the printing output of its card manufacturing line in Malaysia from an estimated annual production capacity of approximately 19 million decks to approximately 44 million decks to accommodate the revisions in business strategy.
It will also set up a warehouse in Macau in place of a manufacturing plant, serving as a “centre in providing a total solution in supplying and handling of playing cards in sealed security boxes to customers in Macau”. The new Macau Centre is expected to commence operations in the second quarter of 2027, it added.
According to Mega Fortris, the Macau Centre will include an assembly line to undertake pre-shuffling of playing cards which are to be supplied from the card manufacturing line in Malaysia, the insertion of the playing cards into security boxes, the sealing of those security boxes and the delivery of the sealed security boxes to customers in Macau. The center will also maintain a tracking software system for playing cards security boxes and undertake the destruction of used playing cards at a later stage as part of the group’s phased roll-out of services.
In addition to its playing card business Mega Fortris added that it expects to potentially produce collectible cards, including sports, entertainment and trading cards in the future given that its card manufacturing line will be equipped with specialised, integrated and automated machinery for printing, cutting, laminating, inspecting, collating and packaging various types of cards.
Mega Fortris said it would call an Extraordinary General Meeting to vote on the proposed variation in use of proceeds.
