KUALA LUMPUR (Aug 3): BCM Alliance Bhd, en route to list on the ACE Market of Bursa Malaysia by October, has received Bursa Securities' nod for its initial public offering (IPO).

The proposed IPO will involve the issuance of 84.25 million new shares in the laundry equipment and medical device distributor, representing 20% of its enlarged issued share capital. Of the 84.25 million new shares, 22 million shares will be made available to the Malaysian public via balloting, 9 million shares for its eligible directors and employees while the remaining 53.25 million shares are earmarked for private placement to selected investors.

As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 42.13 million shares to selected investors by way of private placement.

Proceeds from the IPO will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores throughout Malaysia, to purchase new commercial laundry equipment and medical devices, for working capital and to defray listing expenses for the IPO.

BCM managing director Liaw Chong Lin said the IPO will facilitate the company with greater financial flexibility to pursue future growth opportunities.

"Once we are listed, we will be placed on a much stronger footing to grow our commercial laundry equipment and medical devices businesses," he said in a statement today.

BCM said the setting up of the chain of Speed Queen self-service launderette outlets around Malaysia is expected to provide it the opportunity to establish and expand its market presence and customer base in the commercial laundry equipment industry.

It is also expected to enhance the company's marketing and increase brand awareness of the Speed Queen brand of vended commercial laundry equipment in Malaysia.

New York-listed Alliance Laundry Systems LLC had in August last year given its authorisation to BCM Group to use its Speed Queen brand for self-service launderettes based on Speed Queen's self-service launderettes' store design, floor plan and layout in Malaysia.

Apart from Speed Queen, BCM is also the exclusive distributor in Malaysia for Steris, Albert Browne, Hitachi, Medifa and Ziehm brands of medical devices, and a non-exclusive distributor in Malaysia for commercial laundry equipment such as Huebsch, Lapauw, Maxi, Forenta, Renzacci, Jensen, Senking, Domus and Sea Lion.