PRG gets green light for listing on GEM

Company to float its manufacturing and related business

PETALING JAYA: The Stock Exchange of Hong Kong Ltd (HK Exchange) has given approval to PRG Holdings Bhd to list its manufacturing and manufacturing-related business via a listing of new shares in the Growth Enterprise Market (GEM) on the HK Exchange on Oct 16, 2017.

PRG is a Main Market-listed investment holding company with interest in property development, construction and manufacturing.

The listing application was submitted via Shenwan Hongyuan Capital (HK) Ltd, the sole sponsor in May this year.

In a statement, PRG said that the listed company (listco) for Hong Kong is incorporated in the Cayman Islands and is a wholly owned subsidiary of PRG. The listing exercise constitutes a deemed disposal for the company arising from the dilution of at least 25% of its equity interest in the listco.

Upon completion of the proposed listing, PRG will continue to be a controlling shareholder of the enlarged issued share capital of listco.

In a statement, PRG group managing director Datuk Lua Choon Hann said that achieving the listing status was more than just about money.

“A place on the GEM market is extremely valuable because now it better brands PRG’s profile. This status will give us extra leverage in growing PRG. Now we have an international fundraising platform and exposure to the much sought-after Mainland Chinese market. This will enable us to capitalise on growth opportunities for the manufacturing business in Malaysia and Vietnam.

“The listing date is also meaningful to us, as it is also the 14th anniversary for the listing of PRG on Bursa Malaysia,” said Lua.

Lua said that the proceeds raised from the proposed listing would accrue entirely to the listco, and be utilised for future expansion of PRG’s capacity and working capital of the manufacturing and manufacturing-related businesses.

According to its website, PRG’s manufacturing arm produces covered elastic yarn and furniture webbing and the company’s products are used in the textile and apparel, furniture, automotive, food packaging, agriculture and medical industries.

PRG has seen a flurry of activity this year. On June 13, PRG announced that it had entered into a RM5bil memorandum of understanding (MoU) with the Finance Ministry’s wholly owned Syarikat Perumahan Negara Bhd (SPNB) to develop affordable homes.

The following month, PRG entered into a strategic cooperation agreement with China’s Jiangsu Provincial Construction Group Co Ltd to jointly undertake infrastructure, property and construction activities in Malaysia and internationally.

Achieving the listing status is more than just about money. Datuk Lua Choon Hann