From left: Sin-Kung Logistics independent director Datuk Haji Abdul Wahabi Abdullah, director Datuk Md Hassim Pardi, independent director Adam Muralidharan Abdullah, independent director Datuk Hj Mohamad Dalib, managing director Alan Ong, executive director Angeline Ong, chairwoman Tan Soo Mooi, executive director Adeline Ong, independent director Lee Lean Suan, general manager Adeline Ong, M&A Equity Holdings Bhd managing director Datuk Bill Tan and M&A Securities Sdn Bhd head of corporate finance Gary Ting
KUALA LUMPUR: The trading stock of Sin-Kung Logistics Bhd changed hands for the first time on the ACE Market of Bursa Malaysia at 13 sen a share, on a par with the price of its initial public offering (IPO).
At 10.55am, shares in the company were up 0.5 sen to 13.5 sen a share on the back of 114.05 million shares traded, making it the fourth most active counter on the Exchange.
In a statement, Sin-Kung, which is principally involved in the provision of trucking services with a focus on airport-to-airport road feeder services, said it expects demand for its trucking services to increase in tandem with a sharp rise in demand for air cargo.
It said the preference for air cargo was due to it being a less volatile alternative to traditional shipping routes, offering faster and more reliable service.
Managing director Alan Ong said the rapid rise of e-commerce post Covid-19, disruption in ocean shipping and supply chain diversification are some of the main drivers of air cargo demand in the current market.
“The Red Sea crisis and e-commerce boom have somehow benefitted Sin-Kung Logistics as we are currently serving about 50 airlines across Peninsular Malaysia, and Singapore.
“The company is well-positioned to secure more jobs as our airport-to-airport road feeder services covering extensive network of airports across Peninsular Malaysia, Singapore and Thailand,” he said.
Of the RM26mil in proceeds raised from the IPO, Sin-Kung will utilise RM2mil to purchase 100 commercial vehicles by 2025, as part of its strategy to further expand its trucking and container haulage businesses.
A further RM10mil will go towards funding its warehousing and distribution services’ expansion to meet the future rising demand from manufacturing and e-commerce sectors.
A sum of RM9.6 million will be used to repay bank borrowings followed by RM1.1mil for working capital and the remainder RM3.3mil for its estimated listing expenses.
Upon its listing, Sin-Kung had a market capitalisation of RM156mil based on its enlarged share capital of 1.2 billion shares.