LIMAHSOON oversubscribed 18.41 times
The Edge, 14 July 2004
Second Board-bound LIMAHSOON Bhd's public
issue of six million shares of 50 sen each at RM1.08 apiece
has been oversubscribed 18.41 times.
In a statement on July 13, the company said a total of 26,151
applications for 116.49 million shares were received for
the six million shares offered.
LIMAHSOON is an integrated manufacturer of laminated boards,
finger-joint panels, furniture components, flooring strips
and other rubberwood products.
It has also fully placed out 8.40 million shares, while
another four million shares were reserved for Ministry of
International Trade and Industry-approved bumiputera investors.
Another two million shares were reserved for directors,
employees, customers and suppliers of the group. LIMAHSOON
is scheduled to be listed on July 22.
It targets to raise RM24.72 million for repayment of bank
overdrafts and bills, capital expenditure, working capital
and listing expenses.
Meanwhile, the company plans to increase its production
capacity due to the anticipated expansion in terms of sales
in the local furniture market from RM6 billion this year
to RM7 billion in 2005.
Its managing director Lim Chong Kim said its plant in Beranang,
Selangor was running at 70% of capacity with annual production
of 20,000 cubic metres. It expects to increase its production
to 28,000 cubic metres by next year following higher demand.
"We plan to increase our production capacity based
on growing demand in the market," he told reporters
after the company's balloting ceremony in Kuala Lumpur on
July 13.
Over 90% of its products are supplied to local furniture
makers, while 3% is exported to markets including Germany,
Japan, India and Korea.
Lim said the company was looking at increasing its exports
directly as currently most of its products were exported
through local clients. He said the targeted markets included
Singapore, Hong Kong, China, Vietnam, Europe and the Middle
East.
Lim said it was also mulling the expansion of its product
line by adding woodchips-based products next year. He said
it spent an average of RM200,000 a year on research and
development.
Link captured from: www.theedgedaily.com
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