From left: Eco Asia Capital Advisory Sdn Bhd director Kelly Neng, Eco Asia Capital Advisory managing director Kelvin Khoo, TA Securities Holdings Bhd head of corporate finance Ku Mun Fong, KGW Group Bhd independent non-executive chairman Tengku Faizwa Tengku Razif, KGW managing director Datuk Roger Wong, KGW executive director/chief operating officer Cheok Hui Yen and TA Securities executive director, operations, Tah Heong Beng.
KUALA LUMPUR: 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 August 1, 2023.
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.
Proceeds from the IPO exercise will be used mainly to repay bank borrowings of RM10 million, 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).
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.
According to Wong, the group is also planning to expand its sales and marketing department by having an international business development team as one of its key strategies in its expansion.
"We are an asset-light logistics provider that specialises in managing and coordinating the movement of goods within the supply chain.
"Instead of owning physical transportation assets such as ships, trains and aircrafts, we focus on providing more valuable services to our customers to facilitate their whole shipment process by leveraging partnerships and collaborations with existing transportation operators," he added.
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. - Bernama
