Msafe Equipments Ltd IPO

The company's business is significantly dependent on the performance of the construction and infrastructure sector, and any slowdown or adverse developments in these sectors may adversely affect its business, financial condition, results of operations and cash flows.

The company deriveds a significant portion of its revenue from the sale and rental of the company's key product i.e. Aluminium Scaffolding. Any decline in the sale or rental services of its key offering could have an adverse effect on the company's business, results of operations and financial condition.

The company does not have long-term agreements with its customers, and the company's revenues are dependent on purchase orders or work orders, which may not be renewed in the future.

The object of the Offer relating to expansion of its rental segment is based on estimates and assumptions and the actual cost and implementation may vary from those disclosed.

A significant portion of its revenue is derived from the company's rental business, and any decline in rental demand, changes in customer preferences or adverse developments in its rental operations may adversely affect the company's business, financial condition, results of operations and cash flows.

The company's products are used in elevated-work environments with inherent safety risks, and any accidents or safety incidents involving its scaffoldings or ladders could expose the company to claims, litigation, regulatory action or reputational harm.

The company has recently commenced in-house manufacturing of scaffoldings and ladders, and given the company's limited operating history in manufacturing, the company may faces challenges that could adversely affect its business, financial condition, results of operations and future growth prospects.

The company is significantly dependent on a limited number of suppliers for procurement of its raw materials, with which the company does not have any long term agreements and any disruption in supply or volatility in raw material prices may adversely affect its business, financial condition, results of operations and cash flows.

There are outstanding legal proceedings involving the Company. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on the company's business, prospects, results of operations and financial condition.

The company's business requires significant investment in equipments and inventories, and any under-utilisation of its rental equipments or inability to efficiently manage inventories could adversely affect the company's profitability, working capital and return on capital employed.