Kim Hin Joo signs underwriting agreement with UOB Kay Hian

Kim Hin Joo signs underwriting agreement with UOB Kay Hian
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KUALA LUMPUR (June 10): Kim Hin Joo (M) Bhd signed an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd to appoint UOB Kay Hian as the principal adviser, sponsor, underwriter and placement agent for Kim Hin Joo’s initial public offering (IPO).

The IPO is in conjunction with baby, children and maternity products retailer Kim Hin Joo's planned listing on Bursa Malaysia’s ACE Market. In a statement today, Kim Hin Joo said the IPO entails a public issue of 76 million new shares in the company and an offer for sale of 57 million existing shares.

"Pursuant to the underwriting agreement, UOB Kay Hian will underwrite a total of 29 million shares comprising 19 million new shares available for the Malaysian public and 10 million new shares reserved for application by the eligible directors and employees, as well as persons who have contributed to the success of Kim Hin Joo and its subsidiaries, subject to the clawback and reallocation provisions set out therein," Kim Hin Joo said.

The company said it has obtained conditional approval to list on the ACE Market of Bursa Malaysia. Kim Hin Joo said it is targeting to launch its prospectus in June 2019, with a listing scheduled for July 2019.  

According to Kim Hin Joo, the group is a retailer of baby, children and maternity products and a franchisee of the Mothercare and Early Learning Centre (ELC) brand in Malaysia. 
Kim Hin Joo said it also distributes baby, children and maternity products for various brands such as Tommee Tippee, Konfidence, Mimosa and Snapkis in Malaysia. 

"As part of its growth plans, Kim Hin Joo is also in the midst of finalising a development agreement with The Entertainer UK, a United Kingdom-based toy retailer, which will enable the company to open and operate The Entertainer toy outlets in Malaysia, and sell a broad range of toys. 

"The company currently operates 17 Mothercare outlets and 11 ELC store-in-stores. Kim Hin Joo Group also has 624 distribution points spread throughout Malaysia, which includes specialty stores, department stores, hypermarkets and other retailers," Kim Hin Joo said.