BCM Alliance expects to raise RM16.01 mln

K UA L A LU M PU R : Distributor of laundry equipment and medical devices BCM Al l i ance Bhd, which is en route to listing on the Ace Market of Bursa Malaysia, expects to raise RM16.01 million from the initial public offering ( IPO).

Managing director Liaw Chong Lin said the setting up of a chain of Speed Queen sel f- service launderet te outlets around Malaysia is expected to provide the company an opportunity to expand its market presence and customer base in the commercial l au nd r y e qu i pme n t industry.

Of the total IPO proceeds, RM2.60 million (16.2 per cent) will be used to set up a chain of 11 new Speed Queen selfservice launderette outlets as concept stores throughout Malaysia.

The remaining RM7.70 million ( 48.1 per cent) is for the purchase of new c omme rc i a l l au nd r y equipment and medical devices, with RM3.21 million ( 20.1 per cent) to fund the group’s day- to- day working capital expenses and the remaining RM2.50 million ( 15.6 per cent) to defray listing expenses for the IPO.

“We intend to establish and set up 11 new Speed Queen self-service launderette oulets in major townships in the Klang Valley, Johor, Penang, Melaka, Negeri Sembilan, Terengganu and Kelantan by end2018,” Liaw told reporters after the launch of its prospectus here yesterday.

He also said the group is expected to enhance the company’s marketing and increase brand awareness of the Speed Queen brand of vended commercial laundry equipment in Malaysia.

Liaw said the group plans to expand to Indonesia and Indochina within two years.

With the IPO, the group expects to increase its market share for commercial laundry (from the current 20 per cent), vended laundry (40 per cent) and medical devices (20 per cent) over the years.

Chairman Datuk Chin Ghoo Chai said he is upbeat on the company’s prospects amid the positive outlook for both the commercial laundry equipment and medical devices industries moving forward.

“BCM Alliance has moved upstream from being a maintenance and repair service provider to a distributor of medical devices and commercial laundry equipment.

“We hope the listing would enhance our profile in no small way, and propel us towards increasing the product range even further in the future,” added Chin.

He said the IPO will give the group access to funds from Malaysian capital markets for its future expansion plan.

Based on the enlarged issue and paid-up share capital of 421.25 million shares, the company is expected to have a market capitalisation of RM80.04 million.