Kanger aims to raise RM20m from IPO

by **Cals** Mon 09 Dec 2013, 08:34

Posted on 8 December 2013 - 02:16pm
Last updated on 8 December 2013 - 02:24pm

KUALA LUMPUR (Dec 6, 2013): China-based bamboo flooring maker Kanger International Bhd, en route for listing on the ACE Market of Bursa Malaysia on Dec 23, 2013, aims to raise RM20 million from the exercise.

Kenanga Investment Bank Bhd head of corporate and institutional coverage Leong Yew Loong said of the total proceeds, RM1 million will be used for capital expenditure, RM2 million for research and development, RM5.5 million to repay bank borrowings, RM8.2 million for working capital and RM3.3 million for listing expenses.

"Kanger will be the first and only company to be listed on the ACE Market of Bursa Malaysia this year. We are pleased to be part of this exercise," he said at the launch of Kanger International's prospectus today.

Kanger CEO Leng Xingmin said the public listing will allow the company to raise capacity and capability to manage bigger operations, business projects and create a strong company profile.

"Our company recorded a revenue of RM38.5 million in 2012 against RM23.4 million registered in 2011 attributable to an increase in export sales and refurbishment projects.

"Against this backdrop, we are confident of expanding our business further," he said, adding that the company was also planning to increase the number of appointed dealers and distribution channels.

The company currently exports its products to Russia, Turkmenistan, the United Arab Emirates, Romania, Germany, Malaysia, France and Australia.

For its initial public offering, Kanger is issuing 11 million new shares to be offered to public applicants and another 69 million new shares to be offered via placement to selected investors at an issue price of 25 sen per share.

Kenanga Investment Bank Bhd is the advisor, sponsor, underwriter and placement agent for the listing. – Bernama