New Listing Kim Teck Cheong jumps 130%, eyes Main Board

by **Cals** Wed 25 Nov 2015, 23:19

New Listing

[size=28]Kim Teck Cheong jumps 130%, eyes Main Board

By Yimie Yong / theedgemarkets.com | November 25, 2015 : 11:35 AM MYT

KUALA LUMPUR (Nov 25): Bursa Malaysia ACE Market-listed Kim Teck Cheong Consolidated Bhd is eyeing an upgrade to the Main Board within two years.

Consumer packaged goods distributor Kim Teck Cheong executive director Dexter Lau said the company had already fulfilled the requirements to be listed on the Main Board.

"We aim to transfer to Main Board in one and a half years or two years," Lau told reporters at Kim Teck Cheong's listing ceremony here today.

Kim Teck Cheong is planning an expansion to Brunei. Lau said the Sabah-based company hoped to own a distribution centre in Brunei.

He said the company had proposed to acquire a Brunei-based firm for RM1.54 million. According to him, the acquisition will be funded internally and not from the initial public offering (IPO) proceeds.

"We will be making the announcement in the first quarter of 2016. We will then own a distribution centre in Brunei. This will bring the number of distribution centres to 19," Lau said.

Kim Teck Cheong's IPO involved a public issue of 142 million new shares at 15 sen each, valuing the company at RM76.54 million. The market capitalisation is based on the group's expanded issued share capital of 510.28 million units.

Today, Kim Teck Cheong shares jumped as much as 19.5 sen or 130% to 34.5, to become Bursa Malaysia's most-active stock.

At 11:09am, the fourth-largest gainer was traded at 31 sen, with some 143 million shares done. Earlier, the stock opened at 30 sen, with about 14.01 million shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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