Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on January 27, 2016.

 

 

KUALA LUMPUR: Chin Hin Group Bhd, en route for a listing on the Main Market of Bursa Malaysia is expected to launch its prospectus next month and is looking to raise RM41.08 million through the initial public offering (IPO) for business expansion for the next two years, repay borrowings and working capital.

In a statement yesterday, Chin Hin said it has signed an underwriting agreement with M&A Securities Sdn Bhd as its adviser, underwriter and placement agent in conjunction with its IPO exercise.

The building material provider’s IPO entails a public issue of 63.2 million new shares at the issue price of 65 sen apiece, of which 25.29 million shares will be available for the Malaysian public, 6.4 million shares for eligible directors and employees, while 31.5 million shares via private placement to identified investors.

A total of 65 million existing shares will also be offered for sale, of which 14.41 million shares are by way of placement to identified investors, and 50.59 million shares will be offered for sale by way of placement to bumiputera investors approved by the international trade and industry ministry.

Chin Hin group managing director Chiau Haw Choon said the business expansion comprises the purchase of new plant, equipment, and machineries as well as expansion of manufacturing facilities.

Chiau noted that the construction industry is expected to continue growing and is estimated to reach RM45.53 billion in 2019, which represents a compound annual growth rate of 8.5% from 2014 to 2019, based on a report by the Independent Market Research.

“We believe the forecast expansion in the construction industry will underpin growth in demand for building materials and this augurs well for the overall development of the building materials industry,” he added.

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