Seng Fong gets green light from SC for Main Market listing
Seng Fong Holdings Bhd has secured approval from the Securities Commission Malaysia (SC) for its initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.
With history tracing back to 1986, Seng Fong is principally involved in the processing of Standard Malaysia Rubber and premium grade block rubber as well as trading in block rubber, where its customers are mainly tyre manufacturers or international rubber traders. The company also operates a Malaysian Rubber Board-approved laboratory for the testing, grading and certification of the processed block rubbers.
The group’s listing exercise will involve the offering of up to 160.87 million shares, made up of 90.81 million public issue shares and an offer sale of 70.06 million existing shares.
The group stated that the shares for listing exercise for institutional investors would be up to 118.68 million shares representing 22.9% of the enlarged issued shares alongside a retail offering of up to 42.2 million shares representing 8.1% of the enlarged issued shares.
It outlined the institutional portion would comprise 64.87 million IPO shares or 12.5% of the enlarged issue shares to bumiputra investors approved by the Ministry of International Trade and Industry and 53.81 million shares or 10.4% offered to other institutional and selected investors.
The retail portion would entail a 12.97 million shares or 2.5% stake offered to bumiputra investors as well as another 12.97 million shares or 2.5% stake offered to non-bumiputra investors as well as 16.25 million IPO shares or 3.1% stake to eligible directors and employees of the group as well as persons who have contributed to its success.
Seng Fong managing director Er Hock Lai remarked that the listing will enhance its reputation and help it expand its customer base and gain access to the capital markets to raise funds for future growth opportunities.
Proceeds from the listing will go to working capital needs, including increasing its production capacity and repaying bank borrowings, which includes a term-loan for the solar systems installation.