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Published: Friday October 30, 2009 MYT 3:08:00 PMUpdated: Friday October 30, 2009 MYT 5:35:56 PM
KUALA LUMPUR: Kelington Group Bhd, which provides services in ultra-high purity (UHP) gas and chemical delivery systems, plans to focus on expanding its existing overseas market comprising China, Taiwan and
Its chairman and chief executive officer Raymond Gan Hung Keng said the company expects to secure a contract worth between RMB50 million and RMB60 million from China in the coming months.
Speaking at the launch of the company's prospectus here on Friday, Gan said that
Kelington hoped to raise RM5.15 million from its initial public offering (IPO).
From the proceeds, RM2.64 will be allocated for working capital, RM0.50 million for capital expenditure, RM0.25 million for research and development (R&D), and the balance of RM1.76 million to defray the listing expenses, he said.
"With the IPO we hope to be more confident in bidding for larger projects for better growth and garnering a higher international profile and market acceptance," said group president and chief operating officer Steven Ong.
Kelington is scheduled to be listed by Nov 25, 2009, becoming the first listing on the ACE (Access, Certainty and Efficiency) Market since it replaced the Mesdaq Market on Aug 3 this year.
Revenue contribution from the overseas market grew 43 per cent annually from RM9 million in 2004 to RM38 million in 2008, comprising over 60 per cent of Kelington's total revenue in 2008.
"Our impressive overseas revenue growth was a result of the group's active participation in implementing our solutions in many high technology facilities in China and Taiwan," said Gan.
According to Ong, Kelington has captured 18 per cent share of the Malaysian market and is aiming to increase its current one to two per cent market share in China.
UHP gas and chemical delivery systems are deployed in highly specialised industries such as the flat panel display (FPD) and wafer fabrication sectors and emerging industries such as the solar energy, pharmaceutical, light-emitting diode (LED) and bioscience sectors.
In China, the semiconductor, FPD manufacturing and pharmaceutical industries
are the main areas driving the growth of the UHP gas and chemical delivery system industry, said Gan.
"The industry is evolving and the need for UHP purity levels will be more stringent. The company is targeting to spend RM90,000 to RM100,000 on R&D this year to catch up on the high technology front," he said.
"Having established our position in the existing markets, we now aim to expand our market share not only within our stronghold sectors of wafer and FPD fabrication, but also to meet demand in new and emerging industries such as solar energy, LED and bioscience," he added.
Headquartered on Shah Alam, Kelington has established its footprint in Taiwan and China since 2002, building strong relationships with three of the world's largest gas companies, namely the Linde Group, Air Liquide and Air Products.
Its customers include global players such as Intel, TSMC, Promos, Winbond and Texas Instruments in the wafer fabrication sector, Hannstar Display and IVO in flat panel display, Suntech and Motech in solar cells, and Seagate in storage media. - BERNAMA
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