HK firm to list on Bursa

Diamond Wood China plans ACE Market IPO next year
PETALING JAYA: Diamond Wood China Ltd is proposing a listing on Bursa Malaysia's ACE Market. The company's draft prospectus was posted on the website of the Securities Commission (SC) yesterday.
The
company was incorporated in Hong Kong and founded to manufacture and
commercialise Accoya wood for the East Asian markets. Accoya wood is an
artificially created hardwood created from natural wood. It has been
created to be easy to maintain and somewhat exposure-resistant to
ultraviolet radiation. Accoya wood is widely used for general and home
construction.
Major shareholders of Diamond Wood include Nicholas Alan Edwards and Stephen Smedley.
Edwards owns investment company Silversea Holdings Ltd while Smedley owns investment company Hamilton Holdings Ltd.
The
company expects the listing on Bursa to enhance its business, profile
and future prospects. Listing it on Bursa will also provide the group
with access to the capital market and allow it to raise funds for future
expansion and growth. It also provides an opportunity for Malaysian
investors to participate in its equity and growth.
The company
looks to raise proceeds for the group to largely fund the construction
of an Accoya wood manufacturing plant in Nanjing, China with a
production capacity of 128,000 cu m of Accoya wood per annum. This plant
is expected to cater for the expected increase in demand for Accoya
wood in East Asia.
Diamond Wood achieved a net loss of RM31.16mil with revenue of RM6.1mil as at June 30, 2011, .
ECM Libra Investment Bank Bhd
is Diamond Wood's principal adviser, sponsor, managing underwriter;
underwriter and placement agent for the company's initial public
offering (IPO).
A total of 200 million new shares will be offered
at a to-be-announced IPO price some time next year. The new shares will
represent 34.32% of the company's enlarged issued and paid-up share
capital upon listing. About 30 million shares will be made available for
application to the Malaysian public while the remaining 170 million
will be by way of private placement to selected investors.
Upon listing, the company will have an enlarged issued and paid-up share capital of about 582.67 million shares.