KGW’s RM16.73M ACE Market IPO

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KGW Group Berhad, a prominent logistics services provider, has announced the launch of its prospectus for an upcoming initial public offering (IPO) on Bursa Malaysia Securities Berhad’s ACE Market. The IPO aims to raise RM16.73 million through the issuance of 79.66 million new shares at an IPO price of RM0.21 per share. These funds will be allocated towards KGW’s future expansion plans, working capital requirements, and the repayment of bank borrowings. Additionally, a portion of the proceeds, amounting to RM2.00 million, will be utilized for renovating the Group’s three-story office building and adjacent two-story warehouse. Another RM0.73 million will be allocated for working capital purposes, RM10.00 million for the repayment of bank borrowings, and RM4.00 million for estimated listing expenses.
Datuk Roger Wong, the Managing Director of KGW, emphasized the Group’s asset-light approach in logistics provision, focusing on the efficient management and coordination of goods within the supply chain. Rather than owning physical transportation assets, KGW strives to deliver valuable services to its customers by leveraging partnerships and collaborations with existing transportation operators, thereby streamlining the entire shipment process.
Ku Mun Fong, Head of Corporate Finance at TA Securities Holdings Berhad, praised KGW for its extensive network of logistics services providers worldwide, enabling the Group to facilitate the shipping of goods from Malaysia to various destinations across Asia, Africa, Europe, North America, and South America. This network positions KGW favorably for business growth and competition in the industry.
KGW Group’s strategic plans following the IPO include expanding its customer base for non-USA export destinations, scaling up operations through an increased headcount, expanding warehousing services for healthcare-related products, and exploring new business opportunities in logistics services, particularly through e-commerce solutions.
Kelvin Khoo, Managing Director of Eco Asia Capital Advisory Sdn. Bhd., expressed confidence in KGW’s ability to successfully implement these strategies under the leadership of Dato’ Roger and his management team, further solidifying the Group’s presence in the logistics industry.
KGW has demonstrated consistent revenue growth over the years, with recorded revenues of RM43.38 million, RM63.52 million, RM195.42 million, and RM229.70 million for the financial years ending December 31, 2019, 2020, 2021, and 2022, respectively. The Group also achieved a profit before tax of RM0.60 million, RM2.86 million, RM20.75 million, and RM21.87 million for the corresponding periods.
TA Securities acts as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, while Eco Asia serves as the Financial Adviser.

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