KNM hopes to raise RM21mil from listing


  • Business
  • Thursday, 19 Jun 2003

By Izwan Idris

KNM Group Bhd hopes to raise RM21mil from its initial public offering (IPO) in conjunction with its proposed listing on the KLSE second board, according to managing director Lee Swee Eng.  

Of the proceeds, RM11mil will be used to partly settle the group’s existing loan, RM8mil to fund the group’s expansion plans, and the rest for future working capital and listing expenses. 

The IPO involves the issue of 6.68 million new shares of RM1 each at an offer price of RM1.48 per share. The company has also implemented a rights issue exercise.  

“We hope to release the prospectus within the next two weeks,’’ Lee told reporters after the company’s underwriting signing ceremony in Kuala Lumpur yesterday. 

Aseambankers Malaysia Bhd is the adviser and managing underwriter for KNM’s listing exercise. 

KNM is an investment holding company involved in the manufacture of process equipment and storage facilities for the oil, gas and petrochemical industries. 

Last year the company posted a turnover of RM107mil, of which 45% was from exports.  

“KNM has undertaken and completed various projects for both local and overseas customers in North and South America, Europe, Africa, West and East Asia as well as Australia and Oceania,’’ Lee added. 

At present, the company has three manufacturing plants in Malaysia and a year-old 10,000-tonne capacity facility in Changshu, China. 

“All four plants are equipped with plate rolling and bending machines and state-of-the-art machinery for welding and testing, which enable the group to produce process equipment of high quality at competitive cost,’’ said Lee. 

The company is also planning to commercialise a number of its in-house developed processes to external parties. 

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