POLY Tower Ventures Bhd, whose initial public offering (IPO) of three million shares has been oversubscribed by 74.59 times, expects double-digit growth in its export of plastic bags and films to the US and Africa next year.
Group managing director Lew Chin Kwee said the forecast was in line with increasing demand from overseas markets as well as the company's expansion into New York and Angola in Africa.
“The company is currently looking for an area for our sales office in New York,” he said after the balloting of Poly Tower shares in Kuala Lumpur on Saturday.
Lew said the company was also appointing an agent in Angola .
Its exports to the US and Africa currently account for 3.5% and 14.5% respectively of its total annual revenue.
Poly Tower, en route for a listing on the KLSE second board, exports about 95% of its output to 16 countries including, Britain, Japan, Taiwan, Czech Republic, South Africa, Australia and New Zealand.
Equipped with 57 plastic extrusion machines churning out 2,100 tonnes of output monthly, the company is focused on manufacturing a wide range of products from customised shopping bags, specialty shopping bags, garbage disposal bags to bio-degradable bags.
It also produces construction and agriculture films.
The company's customers consist of international supermarkets, hypermarket, retail chain stores, convenience shops and fast-food outlets like Tesco, Woolworths, Sainsbury, Greggs, Carrefour, Sogo, Bata, Shoprite, Nike, Laura Ashley, Homebase, Kentucky Fried Chicken, Spar, 7-Eleven and Smorgan Steel.
Poly Tower also has the technology to produce bio-degradable plastic bags, which could provide a new revenue stream.
It is planning to introduce new products including agriculture mulch films, industrial packaging films, bin liners, building industry films and landfill covers using totally degradable plastic additives.
Poly Tower's IPO of three million shares of 50 sen each attracted 68,849 applications for 226,761,400 shares worth RM204.08mil.
The company's 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 90 sen each.
Of the 10 million shares, 3 million will be available for public subscription, 4 million reserved for directors, employees of Poly Tower and its subsidiaries, and 3 million for private placement.
Proceeds of RM9mil raised from the IPO will be used for the acquisition of Kinsplastic Sdn Bhd, upgrading and expansion of its production facility in Klang, repayment of bank borrowings, working capital and for listing expenses.