KUALA LUMPUR: Telent Outdoor (Hong Kong) Technology Co Ltd, which primarily operates in China and is principally in the design, manufacturing, marketing, brand management and distribution of its  branded outdoor apparel, footwear and equipment, is seeking to list on the Main Market of Bursa Malaysia to raise capital for expansion.

In its draft prospectus submitted to the Securities Commission, the Bermuda-incorporated firm said it plans to raise a yet-to-be-specified amount of money from its initial public offering (IPO) here to expand its distribution network and retail points-of-sale (45% of the proceeds) and advertising and branding (10%).

It is also to strengthen product research, design and developmental capabilities (10%).

The remainder will be used for working capital (25%) and to cover listing expenses (10%).

Its IPO will entail the issuance of 103.39 million new shares of US$0.10 (35 sen) each, which represents 14.2% of its issued and paid-up capital of 728.1 million.

There will be 30.62 million shares available for subscription by the Malaysian public, while 72.77 million has been allocated for private placement to selected investors.

It was incorporated on Aug 5 last year and registered in Malaysia as a foreign company on Sept 23 the same year. It operates in China primarily through its indirect subsidiary, Fuxin Telent (Fujian) Outdoor Products Co Ltd. Fuxin is wholly-owned by Telent (Hong Kong) Holding Ltd, which in turn is controlled by Telent.

This article first appeared in The Edge Financial Daily, on December 18, 2014.