KUALA LUMPUR (Oct 24): Only World Group Holdings Bhd (OWG), which is seeking a listing on Bursa Malaysia's Main Market, is expected to raise RM50 million from its initial public offering exercise (IPO).

The IPO proceeds will finance leisure and hospitality-based OWG's business expansion plans. OWG's businesses include food outlets and water amusement parks.

OWG said in a statement today that the IPO entailed a public issue of approximately 56.41 million new shares in the company at a tentative price of 88 sen apiece.

Under the public issue, some 9.25 million shares will be available for application by the public, while four million shares will be available for application by eligible directors, employees and other persons who have contributed to the success of OWG.

OWG has earmarked about 18.5 million shares for private placement to Bumiputra investors approved by Ministry of International Trade and Industry (MITI). OWG will place out the remaining 24.66 million shares to selected investors.

The company said it has yet to decide on its listing date. But the prospectus is expected to be launched by end of next month.

At a press conference here today, OWG Managing Director and Group Chief Executive Officer Datuk Koh Cheong said the IPO proceeds would be predominantly utilised for OWG's food services outlets and other business plans.

The press conference was in conjunction with the underwriting agreement signing ceremony between OWG and Public Investment Bank Bhd (PIBB). OWG has appointed PIBB as the principal adviser, sole underwriter and sole placement agent for the IPO.

According to Koh, OWG's business plans include the refurbishment of five specific levels within KOMTAR Tower in Penang, known as Top of Penang (TOP) project.

He said the OWG had secured the project under a a 45+15-year concession from the Penang state government.

"Currently, the project is on track and about 40% of the refurbishment work have been completed," Koh said.

He said the entire project was expected to be completed by July 2015.

"Apart from that, part of the proceeds will also be used to finance our working capital and listing expenses," Koh said. He revealed that OWG's prospectus would also indicate the company's dividend policy.

OWG also signed an underwriting agreement with Public Investment Bank Bhd (PIBB), to appoint PIBB as the Principal Adviser, sole underwriter and sole placement agent for the IPO exercise.