KUALA LUMPUR: KGW Group Bhd is looking to list on Bursa Malaysia in order to expand its business portfolio across all of its divisions.
The group plans to increase the amount of warehousing and distribution space it provides for medical equipment and supplies.
According to the group's managing director, Datuk Roger Wong, it is also looking for potential in offering e-commerce solutions backed by its logistical services.
KGW received approval from Bursa Securities for the listing on April 13, 2023.
It has signed an underwriting agreement with TA Securities Holdings Bhd. to serve as an underwriter for its upcoming initial public offering (IPO) on the ACE Market.
Wong said that KGW wants to broaden the group's geographic emphasis and offerings within its logistics services industry.
He also added that the IPO will assist KGW in achieving its growth target.
"We are happy to work with TA Securities to expedite the listing exercise on the ACE Market," he said.
Ku Mun Fong, head of corporate finance at TA Securities, expressed his company's eagerness to collaborate with KGW on its listing process.
"The group's operations are based on an asset-light model as its strength lies in assisting customers in managing and planning their cargo shipment schedules around the world, supported by a strong network of suppliers. KGW has a track record going all the way back to 2005 with an experienced team," Ku said.
KGW reported revenue of RM195.42 million in the fiscal year 2021 (FY 2021), up from RM63.53 million in the prior year, with gross profit margins of 16.88 per cent and 14.19 per cent, respectively.
Based on the prospectus exposure as published on the Bursa Securities website, KGW's listing exercise involves the public issue of 79.66 million shares, or 16.5 per cent of the company's enlarged share capital, and an offer for sale of 43.45 million shares, representing nine per cent of its enlarged share capital at the IPO price.
TA Securities will underwrite the 24.14 million issue shares made available to the Malaysian public.