ENGLISH
|
JAPANESE
|
CONNECT WITH US:
Home
About
Contact
Log in
*
Home
Press release
Jun 14, 2022 14:00 JST
Source:
Seng Fong Holdings Berhad
Seng Fong Holdings Berhad Launches Prospectus for Main Market IPO
KUALA LUMPUR, Jun 14, 2022 - (ACN Newswire) - Seng Fong Holdings Berhad, a rubber processor producing and trading Standard Malaysia Rubber and premium grade block rubber. Block rubbers produced are sold directly to end-user customers and international rubber traders, majority of which are tyre manufacturers. Seng Fong is enroute to a listing on the Main Market of Bursa Malaysia Securities Berhad and is pleased to announce the launch of the Company's prospectus for the initial public offering (IPO).
Seng Fong's IPO involves the issuance of 160.87 million ordinary shares or 31.0% of the Company's enlarged number of issued shares comprising a public issue of 90.81 million shares and an offer for sale of 70.06 million shares. The issued shares will be made available for application in the following manner:
Retail offering of 42.20 million shares representing 8.1% of enlarged number of issued shares will be made available in the following manner:
- 25.95 million shares representing 5.0% of enlarged number of issued shares will be made available for application by the Malaysian public (via balloting), of which 50% will be set aside for bumiputera investors including individuals, companies, societies, co-operatives and institutions
- 16.25 million shares representing 3.1% of enlarged number of issued shares reserved for application by eligible persons
Institutional offering of 118.67 million shares representing 22.9% of enlarged number of issued shares will be made available in the following manner:
- 64.87 million shares by way of private placement to bumiputera investors approved by the Ministry of International Trade and Industry
- 53.80 million shares by way of private placement to other institutional and selected investors
Managing Director of Seng Fong, Mr. Er Hock Lai said, "Our immediate objectives from the listing are to optimise production by increasing our total annual capacity through the hiring of additional workers for a second working shift and implementing the ESG initiatives to make our business to be more sustainable.
"We intend to use part of the proceeds raised the IPO to fund our working capital requirements to expand annual production capacity to 166,000 metric tonnes by 2023 from the current capacity of 142,000 metric tonnes. To further our ESG initiatives, we are also using proceeds raised from the IPO to repay bank borrowings that we have used to install two solar systems that will help reduce overall electricity expenses."
"We are also allocating proceeds raised from the IPO for the installation of two biomass system using wood chips and replacing diesel to reduce overall fuel costs for our factories. We estimate that the use of the solar systems will result in savings of RM2.6 million while the biomass system will help us save RM3.5 million. On top of the cost saving, the use of renewable energy to reduce electricity and fuel consumption is in line with our emphasis on having sustainable business operations and the need to conserve the environment."
"Building on our solid fundamentals and business reputation, we intend to recommend at least 50% of our annual net profit as dividend to shareholders subject to the approval of the Board of Directors and shareholders."
Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng said, "Today marks a milestone for Seng Fong Holdings as the company embarks on a new chapter from a journey that began in 1986 when Mr. Er Hock Lai and his brothers founded the business to process rubber for the domestic market.
We believe that Seng Fong Holdings will be able to leverage on this IPO to attain their immediate objectives while enhancing its presence in the international market for rubber processing."
Almost all of Seng Fong's revenue is derived from sales to international customers for FYE2019 to FYE2021. For the nine months ended 31 March 2022, Seng Fong posted RM662.43 million of revenue with gross profit of RM61.74 million and profit after tax of RM31.32 million.
Seng Fong Holdings Bhd:
http://sengfongholdings.com/
Source: Seng Fong Holdings Berhad
Sectors: Daily Finance, Daily News, Local Biz, Manufacturing
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
Latest Release
Four-strong TOYOTA GAZOO Racing squad to push for more Portugal success
May 02, 2024 18:05 JST
Spectacular Spa awaits TOYOTA GAZOO Racing
May 02, 2024 17:46 JST
Q&M Dental Enhances Digital Capabilities by Integrating Align Technology's Newest iTero Lumina(TM) Intraoral Scanner Across Dental Clinics in Singapore
May 02, 2024 11:00 JST
Sumitomo Metal Mining and Mitsubishi Corporation to Participate in Kalgoorlie Nickel Project - Goongarrie Hub
Apr 30, 2024 19:08 JST
New Immuno-Oncology Research Project in Partnership With Merck Starts at the BioMed X Institute in Heidelberg
Apr 30, 2024 18:00 JST
SPARX Group Establishes Space Frontiers Second Fund
Apr 29, 2024 18:49 JST
MHI Establishes Local Subsidiary "Mitsubishi Heavy Industries Vietnam"
Apr 29, 2024 18:00 JST
POSCO Future M and Honda Reach Basic Agreement on Collaboration for Production of Cathode Materials for Automotive Batteries in Canada
Apr 29, 2024 14:25 JST
Honda Plans to Establish Comprehensive Electric Vehicle Value Chain in Ontario, Canada
Apr 29, 2024 14:16 JST
JCB enables JCB Contactless acceptance at Taichung MRT in Taiwan
Apr 26, 2024 10:00 JST
Mazda Production and Sales Results for March 2024 and for April 2023 through March 2024
Apr 25, 2024 18:21 JST
MHI Begins Operation of SOEC Test Module the Next-Generation High-Efficiency Hydrogen Production Technology at Takasago Hydrogen Park
Apr 25, 2024 17:45 JST
GAC Honda to Begin Sales of All-new e:NP2, the Second Model of e:N Series
Apr 25, 2024 16:50 JST
Toyota Exhibiting at Beijing Motor Show 2024
Apr 25, 2024 16:25 JST
Honda Reaches Basic Agreement with Asahi Kasei on Collaboration for Production of Battery Separators for Automotive Batteries in Canada
Apr 25, 2024 11:10 JST
UNIQLO Sponsors KAWS + Warhol Exhibition Tour, Starting in Pittsburgh
Apr 25, 2024 09:00 JST
Mitsubishi Power Begins Commercial Operation of Seventh M701JAC Gas Turbine in Thailand GTCC Project; Achieves 75,000 AOH To-Date
Apr 24, 2024 17:19 JST
MC and Denka Sign J/V Agreement in Fullerene Business
Apr 24, 2024 17:02 JST
Mitsubishi Motors Posts Record Sales in the Philippines in FY2023
Apr 24, 2024 13:56 JST
NEC Develops High-speed Generative AI Large Language Models (LLM) with World-class Performance
Apr 24, 2024 13:25 JST
More Latest Release >>
Related Release
Seng Fong Holdings Berhad Debuts on Main Market of Bursa Malaysia
July 07 2022 10:00 JST
Main Market-Bound Seng Fong Holdings Berhad IPO Shares Oversubscribed by 3.09 Times
June 29 2022 19:00 JST
Seng Fong Holdings Berhad Signs Underwriting Agreement with Hong Leong Investment Bank
May 26 2022 14:00 JST
Seng Fong Holdings Bhd Obtains SC Approval for Main Market Listing
April 26 2022 13:00 JST
More Press release >>