Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR: Sabah-based Kim Teck Cheong Consolidated Bhd, which is seeking to be listed on the ACE Market of Bursa Malaysia, intends to use the proceeds of its initial public offering (IPO) to expand its warehouse capabilities in Sabah and Sarawak.

It is looking to do so via the acquisition of warehousing facilities in Sibu, Miri and Kuching in Sarawak and the construction of a new one in Kota Kinabalu, Sabah, its draft prospects showed.

The remainder of its IPO proceeds will be used for working capital and estimated listing expenses.

Kim Teck Cheong, which was incorporated in October 2014 as an investment holding company, is involved in the provision of market access and the distribution of consumer packaged goods  — third-party brands as well as its own.

Within its portfolio of third-party brands, the group covers food and beverage products including dry, frozen and chilled food, as well as non-food products including personal care, household, baby care, over the counter drugs and health supplements.

Kim Teck Cheong currently has 14 distribution and warehousing facilities, of which nine are in Sabah, three in Sarawak and two in Labuan.

The group is led by its managing director, Sabah-based businessman Datuk Lau Koh Sing alias Lau Kok Sing.

Its draft prospectus showed that its proposed IPO will involve the issuance of 142 million new shares, which represents approximately 27.83% of the company’s share capital.

Of that, 34 million shares will be made available to the public, 16.26 million shares for eligible employees of the group, while the remainder 91.75 million shares will be allocated for private placement to selected investors.

The price per IPO share and the expected proceeds from the IPO were not disclosed in the draft prospectus. 

In its pro forma consolidated profit or loss statement for the financial year ended June 30, 2014 (FY14), Kim Teck Cheong recorded a net profit of RM5.49 million on revenue of RM229.53 million. Its cash position as at FY14 stood at RM12.48 million.

Its FY12 net profit was RM3.89 million (revenue: RM200.33 million), while FY13 was RM4.49 million (revenue of RM222.73 million).

 

This article first appeared in The Edge Financial Daily, on February 26, 2015.

      Print
      Text Size
      Share