APP expects to raise RM4.5mil from listing


  • Business
  • Wednesday, 18 Jun 2003

CERAMIC pottery and porcelain ware maker APP Industries Bhd, which is en route to a KLSE second board listing, expects to raise RM4.5mil from its share flotation.  

And the company has allocated RM2.1mil of that sum to expand its production plant in Perak, and use the rest of the money to pay off bank borrowings and to meet future working capital needs and listing expenses. 

APP is expected to release its prospectus by end of the month. 

(From left) Ow Hang Sen, AmBank group deputy chairman Datuk Azlan Hashim, APP chairman Tan Sri Talha Mohd and AmSecurities executive director Philip Chang at the underwriting ceremony.

“The new facility, which is an extension of our existing plant in Sungai Siput, Perak, would enable the company to produce higher quality products,’’ managing director Ow Hang Sen said after APP signed an underwriting agreement with AmMerchant Bank Bhd, the adviser, managing underwriter and placement agent for the listing exercise. 

The company is making a public issue of 4.45 million shares and an offer for sale of 8.8 million shares at 60 sen per share.  

Of the entire 13.35 million 50 sen shares, 2.55 million would be made available to the public and 1.7 million placed out to private investors. 

Four million shares are reserved for eligible employees and directors of the company while 5 million would be allocated to bumiputra investors approved by the International Trade and Industry Ministry. 

According to Ow, the company is one of the leading decorative ceramic manufacturers and exporters in Malaysia and the first among them to go for KLSE listing. 

“APP is an export-oriented company with 98% of its final products sold overseas. Our Hang Sen brand is a registered trademark in Britain, Germany and the US,'' he said. 

Last year, the group posted a pre-tax profit of RM8.9mil on revenue of RM50mil.  

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