KUALA LUMPUR: Logistics service provider KGW Group Bhd (KGW) plans to raise RM16.73 million via an initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
The company will issue 79.66 million new shares at the IPO price of RM0.21 per share to fund KGW’s future expansion as well as for working capital and repayment of bank borrowings.
The RM2.00 million will be allocated to renovate the group’s three-storey office building and adjacent two-storey warehouse, RM0.73 million will be designated for working capital purposes, RM10.00 million will be utilised to repay bank borrowings, and RM4.00 million will be set aside for estimated listing expenses.
The IPO’s principal adviser, sponsor, underwriter, and placement agent is TA Securities, while the financial adviser is Eco Asia.
KGW Managing Director Datuk Roger Wong says the company focuses on providing more valuable services to consumers in order to facilitate their whole shipment process for efficiency by leveraging partnerships and collaborations with existing transportation exporters.
KGW’s revenue for the financial years ending in 2019, 2020, 2021, and 2022 amounted to RM43.38 million, RM63.52 million, RM195.42 million, and RM229.70 million, respectively, while their profit before tax for the same years was RM0.60 million, RM2.86 million, RM20.75 million, and RM21.87 million, respectively.
