PETALING JAYA: Logistics service provider KGW Group Bhd aims to raise RM16.73 million from its initial public offering (IPO) exercise on Bursa Malaysia’s ACE Market on Aug 1.
The group plans to offer a public issue of 79.66 million new shares at 21 sen per share to fund its expansion plan.
Proceeds from the IPO will be used mainly to repay bank borrowings of RM10 million, for renovation of the group’s three-storey office building and adjacent two-storey warehouse (RM2 million), working capital (RM730,000) and listing expenses (RM4 million).
There will be a public issue of 79.66 million new shares at an offering price of 21 sen per share to fund the group’s expansion plan.
KGW group managing director Datuk Roger Wong said the group plans to grow its business in other geographical markets apart from its strong footing in the United States (US) market.
“We will continue to grow the US market because it is a great market. Moving forward, we also want to grow in depth in Asian markets such as in China and the Middle East, as well as in North and South America,” he told the media after launching KGW’s prospectus today.
The group is expected to have an enlarged market capitalisation of RM101 million on listing.
The public issue portion of the IPO will be made available starting today. It closes on July 18, 2023, 5pm. TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise while Eco Asia is the financial adviser.
