PLASTIC bag manufacturer Poly Tower Ventures Bhd (PTV) expects its recent foray into the manufacture of biodegradable plastic bags and recycled plastic bags to have a significant impact on the company's bottom line in the near future.
Managing director C.K. Lew said the move into making biodegradable plastic bags and recycled bags was to maintain a competitive edge in the industry in view of the increasing demand for such products in developed countries.
It's (demand) definitely going that way (increasing), he told reporters after the company's underwriting agreement signing ceremony in Kuala Lumpur yesterday in conjunction with its proposed listing on the KLSE second board.
PTV has appointed Alliance Merchant Bank as adviser, managing underwriter and placement agent for its planned listing and has made Mayban Securities Sdn Bhd its co-underwriter.
The listing exercise involves a public issue of 10 million new 50 sen shares and an offer for sale of 2 million 50 sen shares at an issue price of 90 sen per share.
Of the 10 million shares, 3 million would be available for public subscription, 4 million reserved for directors, employees of PTV and its subsidiaries, and 3 million for private placement.
Lew said the company's prospectus would be out within a month.
He said the bulk of the funds raised would be used for working capital and the balance to meet listing expenses.
PTV is an investment holding company with subsidiaries mainly involved in manufacturing plastic bags, films and related products.
The company started in 1989 as a family-run business under Klang Hock Plastic (M) Sdn Bhd (KHP). From its inception, the company has been export-oriented.
Currently about 95% of our products are exported, Lew said, adding that the company exported to 16 countries including the US, Britain, Japan, Taiwan, Czech Republic, South Africa, Australia and New Zealand.
Our international customers are generally huge supermarkets, retail chain stores, convenience shops and fast-food outlets, he said.
He said the listing would help the company gain further recognition to expand its export business.
Chairman Datuk Syed Abdul Rahman Syed Abdul Kadir said PTV had adopted new technology in the production of biodegradable plastic bags at one of its three factories in Klang, Selangor.
The biodegradable plastic bags are made from non-toxic additives, he said, adding that the company could go into full production of biodegradable plastic bags any time if the demand was there.
He said to maintain a ready supply of raw materials for its plastic recycling business, PTV had earlier this year acquired Kinsplastic Sdn Bhd.
For the financial year ended Aug 31, 2003, the group posted revenue of RM85mil and pre-tax profit of RM6.3mil.
Currently, the company manufactures a wide range of plastic products like shopping bags, garbage disposal bags, degradable bags, construction films and agricultural films.