Laundry equipment cum medical device distributor BCM Alliance seeks listing

by **Cals** Wed 30 Mar 2016, 02:09

Laundry equipment cum medical device distributor BCM Alliance seeks listing

By Supriya Surendran / The Edge Financial Daily | March 29, 2016 : 10:18 AM MYT

This article first appeared in The Edge Financial Daily, on March 29, 2016.

KUALA LUMPUR: BCM Alliance Bhd, which is involved in the distribution of equipment specialising in the commercial laundry and medical device industries, is seeking entry into the ACE Market of Bursa Malaysia.

The company is looking to raise funds from an initial public offering (IPO) to set up a chain of self-service laundrette outlets (20.6% of the proceeds), buy new commercial laundry euqipment and medical devices (43.5%), and for general working capital purposes (16.1%), with the remainder (19.8%) to defray estimated listing expenses.

The group operates CS Laundry System Sdn Bhd, which is a unit involved in the supply, testing and commission of commercial laundry equipment, as well as Best Contact (M) Sdn Bhd and Maymedic Technology Sdn Bhd, two companies involved in the supply of medical equipment.

According to its draft prospectus posted on Securities Commission Malaysia website yesterday, BCM’s IPO will involve the issuance of 84.25 million new shares, which represent 20% of its enlarged issued and paid-up share capital.

Of this 84.25 million shares, 22 million shares or 5.2% of its issued and paid-up capital will be available for application by the public, nine million shares (2.1%) will be set aside for eligible directors and employees, while 53.25 million shares (12.7%) will be allocated for a private placement to selected investors.

The group is also making an offer for sale of 84.25 million offer shares, representing 20% of its share capital, to selected investors by way of private placement.

Aside from fundraising, BCM believes the IPO will gain it recognition and market visibility to enhance its profile and further augment its corporate reputation. It also sees the IPO as a way of expanding and growing its customer base.

BCM said it recorded a net profit of RM4.86 million for the financial period ended June 30, 2015, up 49.6% from a net profit of RM3.25 million in the same period last year. Revenue for the period was also up by 40.9% to RM37.87 million, compared with RM26.88 million a year ago.

BCM’s board is led by independent non-executive chairman Datuk Chin Goo Chai and its deputy group executive chairman Koh Lap Hing, who has an 18% stake in the company.

Its managing director is Liaw Chong Lin (17%) and there are three executive directors, namely Lim Jit Wei (16%), Chung Eng Lam (17%) and Hew Chun Shun (18%).

Following the IPO, their stakes will be reduced to 10.8% (Koh), 10.2% (Liaw), 9.6% (Lim), 10.2% (Chung) and 10.8% (Hew) respectively. M&A Securities Sdn Bhd is the group’s adviser, sponsor, underwriter and placement agent for the IPO.