KUALA LUMPUR: Sin-Kung Logistics Bhd has signed an underwriting agreement with M & A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO involves a public issue of 200 million new shares and an offer for sale of 103.5 million existing shares, representing 16.7 per cent and 8.6 per cent of the enlarged share capital of Sin-Kung Logistics respectively.
Of the 200 million new shares, 60 million will be made available to the public via balloting, 45 million for its eligible directors, employees and persons who have contributed to the success of Sin-Kung Logistics group under pink form allocations while the remaining 95 million were reserved for private placement to Bumiputera investors approved by the International Trade and Industry Ministry.
As for the offer for sale portion, 55 million shares were reserved for private placement to Bumiputera investors approved by the ministry while the remaining 48.5 million shares will be allocated by way of private placement to selected investors.
Sin-Kung Logistics managing director Alan Ong said the underwriting marked a significant milestone as the company has come a long way with the expansion of its trucking business.
"We have successfully grown our business from our trucking services to comprehensive logistics related services across the logistics industry value chain across the years.
"The IPO is timely for Sin-Kung Logistics as it will enable the company to gain access to the Malaysia capital markets to raise funds to facilitate the continued growth and development of our trucking services, container haulage services as well as warehousing and distribution services," he added.
Established in 1994, Sin-Kung Logistics is an integrated logistics service provider principally involved in the provision of trucking services with a focus on airport-toairport road feeder services covering extensive network of airports across Peninsular Malaysia, Singapore and Thailand.
The company also provides container haulage services, warehousing and distribution services, licensed brokerage and forwarding services, express delivery services and cargo escort services to its customers.
Its major customers are airlines, general sales agents of airlines, local and international freight forwarders, manufacturers and on-line retailers, among others.
Sin-Kung Logistics owns and operates 460 commercial vehicles for the provision of its trucking, container haulage, warehousing and distribution as well as other logistics-related businesses.
It also operates five warehouses in the central and northern regions.