Seng Fong Holdings Berhad Debuts on Main Market of Bursa Malaysia
2022年7月7日 - 11:00AM
JCN Newswire
Seng Fong Holdings Berhad, a rubber processor producing and
trading Standard Malaysia Rubber and premium grade block rubber,
made a successful debut on the Main Market of Bursa Securities
Malaysia Berhad, opening at RM0.75 per share with an opening volume
of 10.8 million shares, which is the same as the initial public
offering (IPO) price of RM0.75 sen per share.
Seng Fong's market capitalisation at listing is RM389.22 million,
and the Company was listed under the stock name, SENFONG and stock
code, 5308.
The Chairman of Seng Fong, Mr. Ng Ah Bah @ Kok Yee, thanked the
Securities Commission Malaysia, Bursa Securities, Hong Leong
Investment Bank Berhad (HLIB) and other professionals involved in
the IPO, and highlighted that the listing provides the Company the
opportunity to realise its immediate objectives as well as
investing in environmental, social, and governance (ESG)
initiatives.
"Going forward, we will be well-positioned to capture opportunities
arising from the increasing demand from our existing customers as
well as from new customers as we ramp up production through the
hiring of more people for a second shift and implementing ESG
initiatives to make our business more sustainable."
"Building a sustainable business also requires the support of our
shareholders. Thus, we intend to distribute at least 50% of our
annual net profit as dividend to shareholders, subject to the
approval of the Board of Directors and shareholders."
Block rubber is driven by the automotive industry with
approximately 70% of global natural rubber being used for tyre
manufacturing. Going forward, the world vehicle sector is
anticipated to grow at a 5-year (2021 to 2025) CAGR of 7.03% to
105.0 million units.
Seng Fong is raising RM68.1 million from the IPO. From the
proceeds, RM19.7 million has been allocated for working capital
requirements including purchase of raw materials and the hiring of
additional workers; RM37.9 million for the repayment of bank
borrowings that include the partial funding for the solar system
units, RM6.3 million to fund the installation of the biomass system
units and RM4.2 million for listing expenses.
The installation of the solar system is estimated to achieve
cost-savings of approximately RM2.6 million per annum from
electricity costs and a further RM3.5 million per annum from diesel
costs through the installation of the biomass system.
For the financial year ended 30 June 2021, the Company's export
market share of block rubber stood at 11.8% based on its export
output of 121,404 metric tonnes ("MTS") against the country's total
export volume for block rubber of 1.03 million MTS in 2021. Seng
Fong's revenue is almost entirely derived from exports, with the
primary markets being China, Hong Kong, Singapore, and Taiwan.
The block rubber produced by Seng Fong are sold directly to
end-user customers, majority are tyre manufacturers, and are also
sold to international rubber traders. Block rubbers which are
sourced from international rubber traders and/or natural rubber
processors, for trading purposes, are sold to tyre
manufacturers.
HLIB is the Principal Adviser, Underwriter and Placement Agent for
the IPO.
Seng Fong Holdings Bhd: http://sengfongholdings.com/
Pictured (from left):
- Mr. Phang Siew Loong, Head of Equity Markets, Hong Leong
Investment Bank Berhad
- Mr. Shim Choon Lim, Co-head of Corporate Finance, Hong Leong
Investment Bank Berhad
- Ms. Lim See Tow, Independent Non-Executive Director, Seng Fong
Holdings Berhad
- Mr. Jimmy Er Tzer Nam, Non-Independent Executive Director
- Mr. E Tak Bin, Non-Independent Executive Director, Seng Fong
Holdings Berhad
- GONG -
- Mr. Er Hock Lai, Managing Director, Seng Fong Holdings Berhad
- Mr. Ng Ah Bah @ Kok Yee, Independent Non-Executive Chairman, Seng
Fong Holdings Berhad
- Ms. Lee Jim Leng, Group Managing Director/Chief Executive
Director, Hong Leong Investment Bank Berhad
- Ms. Lim May Wan, Independent Non-Executive Director, Seng Fong
Holdings Berhad
- Mr. Chong Yeaw Kiong, Independent Non-Executive Director, Seng
Fong Holdings Berhad
( https://www.acnnewswire.com/topimg/Low_SengFong2022707.jpg )
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