KUALA LUMPUR: Cuckoo International (MAL) Bhd has filed for an initial public offering (IPO) on the Main Market of Bursa Malaysia to raise funds for the expansion of its rental business.
In a draft prospectus filed to the Securities Commission, the proposed IPO entails an offer for sale of existing shares and a public issue of new shares at a price to be determined later.
The IPO comprises an offer of up to 25.5 per cent stake in the company.
The company will use part of the gross proceeds to fund product purchases for the expansion of its rental business.
"Our business of offering rental plans where our customers are able to make monthly rental payments for the products over the tenure of the rental contracts requires us to incur significant upfront capital to fund the purchase of products from our suppliers.
"As such, the growth of our rental business is dependent on the availability of cashflows to fund the upfront purchase of products," it said.
Cuckoo also intends to allocate the proceeds to fund upfront purchase of products to meet the growing demand for rental plans in Malaysia.
"We expect to purchase products from our existing suppliers, and potentially from new suppliers for the launch of new products to expand and diversify our product offerings under all our business segments," it said.