Kuala Lumpur, June 12: KGW Group Berhad, an established logistics services provider, has unveiled its plans to launch an initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad. The company has entered into an underwriting agreement with TA Securities Holdings Berhad, signifying a pivotal step toward its public listing.
As detailed in the prospectus available on the Bursa Securities website, KGW Group intends to issue 79.66 million shares, which will constitute 16.5 percent of the company’s enlarged share capital. Additionally, the IPO will include an offer for the sale of 43.45 million shares, equivalent to 9.0 percent of the enlarged share capital, at the IPO price.
The allocation of IPO shares will be carried out as follows:
Public Issue: The Malaysian public will have the opportunity to subscribe to 24.14 million issue shares, representing 5.0 percent of the enlarged share capital. Out of this allocation, half will be set aside specifically for Bumiputera investors. This demonstrates the company’s commitment to promoting diversity and inclusion in its shareholder base.
Eligible Persons: A total of 9.66 million issue shares, accounting for 2.0 percent of the enlarged share capital, will be made available for application by eligible directors, employees, and individuals who have made significant contributions to the Group’s success. This allocation aims to reward and engage key stakeholders within the company.
Private Placement to Selected Investors: Through private placement, 7.24 million issue shares, representing 1.5 percent of the enlarged share capital, will be offered to selected investors. This strategic move allows KGW Group to bring on board investors who can contribute expertise and resources to fuel the company’s growth.
Private Placement to Bumiputera Investors Approved by MITI: An allocation of 38.62 million issue shares, comprising 8.0 percent of the enlarged share capital, has been earmarked for private placement to Bumiputera investors approved by the Ministry of Investment Trade and Industry (MITI). This initiative supports the government’s commitment to promoting Bumiputera participation in the country’s economic development.
Additionally, KGW Group plans to offer 21.73 million shares, representing 4.5 percent of the enlarged share capital, through private placement to selected investors. Another 21.73 million shares, also accounting for 4.5 percent of the enlarged share capital, will be made available for private placement to Bumiputera investors approved by MITI.
TA Securities has been selected as the underwriter for the 24.14 million issue shares allocated to the Malaysian public, further cementing the partnership between the two entities.
Financially, KGW Group reported a significant increase in revenue, reaching RM195.42 million in the fiscal year ending 2021, compared to RM63.53 million in the previous year. The company achieved gross profit margins of 16.88 percent and 14.19 percent for FYE2021 and FYE2020, respectively, underscoring its strong financial performance.
KGW Group obtained approval from Bursa Securities for its listing on April 13. The IPO represents a significant milestone for the company as it sets its sights on a new chapter of growth and development within the dynamic logistics industry.
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