LIMAHSOON IPO oversubscribed 18 times
The Star, 14 July 2004
THE public portion of LIMAHSOON Bhd's initial
public offering (IPO) has been over-subscribed 18.41 times.
The six million shares made available for public subscription
attracted 26,151 applications for 116.5 million shares worth
RM125.8mil.
Its managing director Lim Chong Khim said the company was
very pleased with the public support. For its flotation,
LIMAHSOON had issued a total of 16.4 million new ordinary
shares of 50 sen each at RM1.08 a share. Upon listing, the
issued and paid-up capital of the company will increase
to RM40.2mil."
The company, targeting a second board listing on Bursa Malaysia
by late July, is to use the expected RM24.7mil proceeds
for capital expenditure (RM3.64mil), to pay bills (RM6.5mil),
to settle bank overdrafts (RM6mil), for working capital
(RM6.78mil), and for listing expenses (RM1.78mil).
LIMAHSOON is a leading integrated manufacturer of laminated
rubber wood boards and derives about 97% of its business
locally, through furniture dealers who export its laminated
rubber wood boards as a component.
"We will continue to grow our business locally and
abroad," Lim said, adding that the company had 8% share
of the market in Malaysia worth RM525mil.
He said there was still a lot of room for growth domestically,
and the company planned to increase its overseas business.
"Currently,
our boards are exported to Germany, Japan, India, and South
Korea. We plan to expand to other countries in Asia and
to the Middle East," said Lim.
According to Lim, Malaysia's rubber wood exports in 2003
were worth RM6bil, and were expected to grow to RM7bil this
year.
"We expect to ride on the strong demand for rubber
wood, while looking for ways to improve margins through
greater manufacturing efficiency and innovation," he
said, adding that its factory in Hula Langat was running
at about 70% production capacity.
The company expects to reach maximum capacity in a couple
of years and to expand its factory in time. LIMAHSOON, in
its prospectus, had forecast an after-tax profit of RM9.6mil
on revenue of RM47.3mil in the current financial year ending
Dec 31.
Aseambankers Malaysia Bhd was the adviser, managing underwriter
and placement agent for LIMAHSOON's listing.
Link captured from: www.thestar.com.my
back
