KUALA LUMPUR: Integrated logistics service supplier Sin-Kung Logistics Bhd expects to raise RM26 million from its preliminary public providing (IPO) en route to an inventory on the ACE Market of Bursa Malaysia on May 15.
Managing director Alan Ong stated the corporate plans to utilise RM10 million from the IPO proceeds to fund its warehousing and distribution companies’ enlargement to meet the longer term rising demand from manufacturing and e-commerce sectors.
“We are already making ready for the longer term with the acquisition of our Valdor workplace and warehouse that can add an annual capability of 192,000 pallets to cater to our prospects within the northem area of Peninsular Malaysia when operations start by the top of 2026.
“The Valdor warehouse, a built-to-suit warehouse, will present extra cupboard space to our present 5 warehouses to serve extra and bigger orders from each our present prospects and potential prospects, boosting the income of our warehousing and distribution companies transferring ahead,” stated Ong throughout the firm’s prospectus launch right this moment.
Ong stated that as of March 20, 2024, Sin-Kung Logistics operated 5 warehouses in Shah Alam and Port Klang in Selangor, Bukit Mertajam and Bukit Minyak in Penang with an mixture annual capability of 190,260 pallets.
An additional RM2.0 million of the proceeds will probably be used to buy 100 business autos by 2025 as a part of its technique to develop its trucking and container haulage companies.
“The whole value of the 100 business autos are estimated at RM8 million. We intend to allocate RM2 million of the proceeds for the acquisition of business autos and the stability of RM6 million will probably be funded from our internally-generated funds and/or financial institution borrowings,“ it stated within the prospectus.
Meanwhile, the rest of the proceeds will probably be used to repay financial institution borrowings amounting to RM9.6 million, working capital RM1.1 million and to defray the estimated itemizing bills of RM3.3 million.
Under the itemizing train, Sin-Kung Logistics issued 200 million new shares and a suggestion on the market of 103.5 million present shares, representing 16.7 per cent and eight.6% of the enlarged share capital of Sin-Kung Logistics respectively, at a problem worth of 13 sen per share.
Out of the 200 million new shares, 60 million new shares will probably be made obtainable to the Malaysian public by way of balloting, 45 million shares for its eligible administrators, staff and individuals who’ve contributed to the success of Sin-Kung Logistics group, whereas the remaining 95 million shares are reserved for personal placement to Bumiputera traders permitted by the Ministry of Investment, Trade and Industry (Miti).
As for the supply on the market portion, 55 million shares are reserved for personal placement to Bumiputera traders permitted by Miti, whereas the remaining 48.5 million shares will probably be allotted by means of non-public placement to chosen traders.
Based on the enlarged share capital of 1.2 billion shares, Sin-Kung Logistics is predicted to have a market capitalisation of RM156.0 million after itemizing.
The IPO is open for subscription from right this moment to May 2. – eNM
