KUALA LUMPUR (Oct 28): ACE Market-listed Kim Teck Cheong Consolidated Bhd (KTC) is seeking to transfer its listing status to the Main Market of Bursa Malaysia.
The consumer packaged goods distributor believes that the proposed transfer will enhance its corporate profile, credibility and reputation, and accord it greater recognition and following among institutional investors.
In a filing with the local bourse on Friday (Oct 28), the group said it had met the requirements for the transfer of its listing to the Main Market, as set out in the equity guidelines issued by the Securities Commission Malaysia (SC) and the Main Market Listing Requirements of Bursa.
KTC recorded a net profit of RM20.4 million for the most recent audited financial year ended June 30, 2022 (FY2022), and an aggregate consolidated net profit of RM31.41 million for the past three audited financial years (FY2020-22).
Under the SC's equity guidelines, a corporation is required to achieve a net profit for the most recent financial year of at least RM6 million, and an aggregate audited net profit of at least RM20 million for three to five full financial years.
KTC also met the healthy financial position requirement of the equity guidelines, which requires a corporation to have a sufficient level of working capital for at least 12 months from the date of the announcement, positive cash flow from operating activities over the profit track record period, and no accumulated losses based on the latest audited consolidated statement of the corporation's financial position (as at June 30, 2022 for KTC).
As at Oct 17, KTC's public shareholding spread stood at 30.29% of its issued share capital, meeting the public shareholding spread requirement of Bursa of at least 25%.
"Barring any unforeseen circumstances, the board expects the proposed transfer to be completed by the first half of 2023," said KTC.
UOB Kay Hian Securities (M) Sdn Bhd is the adviser for the proposed exercise.
At the time of writing on Friday, KTC shares were unchanged at 23 sen, bringing the company a market capitalisation of RM153.09 million.