Saturday, 13 June 2015

Logistics based Xin Hwa to raise RM26.45m from IPO

KUALA LUMPUR: Integrated logistics service provider Xin Hwa Holdings Bhd plans to raise RM26.45mil from its proposed listing on the Main Market of Bursa Malaysia Securities.

The Johor-based company said on Thursday the initial public offer (IPO) comprised of 54 million shares at an issue price of 70 sen per share -- 37.78 million new shares and 16.22 million existing shares.

Under the listing exercise, it would be selling nine million shares to the public, three million units for eligible directors, employees and other persons who have contributed to the success of the company.

Xin Hwa said 18.22 million shares would be offered to approved Bumiputera investors while the remaining 23.78 million shares would be placed out to selected investors.

Based on the issue price of 70 sen per share and the enlarged issued and paid-up of 180 million shares, it would have a market capitalisation of RM126mil.

It said of the RM26.45mil to be raised from the IPO, it plans to use RM11.35mil to expand its fleet and RM4.75 to build a new warehouse, RM3.75mil to repay borrowings, RM3.08mil as working capital and the remaining RM3.51 for estimated listing expenses.

Xin Hwa managing director Ng Aik Chuan said at the launch of the prospectus that its strong fundamentals would put it in good stead.

He said the proceeds raised would be mainly used to expand its business which included the construction of a new warehouse in Pasir Gudang, Johor measuring 220,000 sq. ft. and to buy 101 new vehicles such as prime movers and trailers.

Ng said the new warehouse was expected to start operations in the third quarter of 2015 while the purchase of vehicles would be over the next 24 months.

“Xin Hwa would continue to capitalise on its strengths to generate sustainable revenue from its existing business,” he added.

Mobile sharing-based Sedania to raise RM19.5m from IPO

KUALA LUMPUR: Telecommunications and IT business-based Sedania Innovator Bhd plans to raise RM19.55mil from its proposed listing on the Ace Market of Bursa Malaysia Securities Bhd.

In its prospectus issued on Tuesday, it announced it was selling 51.46 million new shares at an offer price of 38 sen each.

Sedania is offering for sale nine million shares to the public while one million units would be offered to the directors and entitled employees while the bulk of 41.46 million shares would be placed out.

Of the RM19.6mil, RM6.8mil will be for working capital, RM4.1mil for marketing expenses, RM4mil for capital expenditure, RM2.5mil for research and development and RM2.2mil for listing expenses.

Managing director Datuk Azrin Mohd Noor said he intends to list the company on the ACE Market on June 29.

The company provides airtime sharing solutions, including transfer that allows prepaid and/or post-paid mobile subscribers to transfer airtime credit to other prepaid subscribers on the same telecommunications network through SMS.

It also provides the airtime sharing request, which enables prepaid mobile subscribers with low or zero credits to request airtime credit other prepaid or post-paid subscribers on the same telecommunications network through SMS. It also offers SMS broadcast, mobile billing, mobile content, Islamic content, and web portal services.

In July 2014, it acquired IDOTTV Sdn Bhd which is an aggregator (platform and service enabler) specialising in providing ancillary services to mobile subscribers by partnering services providers such as mobile network operators (MNOs) and utility companies for their infrastructure and gateway.

Its ATS platform used the MNOs infrastructure and gateway to offer customises solutions to the MNO subscribers.