KUALA LUMPUR (Jan 23): Chemical distributor Samchem Holdings Bhd is exploring the possibility of listing its indirect 63.25%-owned subsidiary Samchem Sphere JSC on the Ho Chi Minh Stock Exchange.

Samchem said the proposed listing will enable it to capitalise on the fast-growing Vietnamese economy and the potential growth of the industrial chemical sector there.

In a filing with Bursa Malaysia today, Samchem said a corporate adviser licensed in Vietnam has been appointed to evaluate and advise on the proposed listing.

It noted that the proposed listing is still at an exploratory and preliminary stage. "Any further material development on the proposed listing will be announced in due course."

Samchem said the proposed listing will provide a platform for Samchem Sphere to obtain a listing status and gain direct access to the Vietnamese capital market to raise funds for its future expansion and continued growth without having to rely on Samchem’s existing resources.

The proposed exercise is also expected to enhance Samchem Sphere’s profile to increase visibility to its customers, suppliers, business associates and investors in the Vietnamese market, it added.

Incorporated in Vietnam on Dec 26, 2006, Samchem Sphere is engaged in the distribution of industrial chemical products. Samchem holds 63.25% of Samchem Sphere shares through its wholly-owned unit Samchem Sphere Export Sdn Bhd.

The remaining stakes in Samchem Sphere are held by its directors — Dennis Ho Chin Chye and Nguyen Thi Thu Thao at 35.75% and 1% respectively.

For the financial year ended Dec 31, 2016 (FY16), Samchem Sphere recorded a pre-tax profit of RM10.47 million on revenue of RM220.42 million. The revenue accounted for 32% of Samchem’s consolidated revenue for the year.

Samchem shares closed up one sen or 0.82% to RM1.23 today, with 2.8 million shares done, giving it a market capitalisation of RM334.56 million.