Oceancash Pacific Bhd (OPB) hopes to raise RM10.16mil from its initial public offering (IPO), part of which it intends to use for new product development and export expansion.
The company, which manufactures automotive felt and non-woven fabrics, planned to increase export sales to account for at least 30% of its total revenue this year, from 20% currently, managing director Tan Siew Chin said.
It was an opportune time for the company to expand production as well as venture into production of other components, he told reporters after an underwriting signing between OPB and Southern Investment Bank Bhd in Kuala Lumpur yesterday. OPB aims to be listed on the Mesdaq Market by June.
Tan said the proceeds would go towards repayment of bank borrowing (RM1mil), purchase of machinery (RM3.16mil), working capital (RM5mil) and listing expenses.
OPB, an investment holding company, has two subsidiaries involved in the manufacture and distribution of resinated felt, used mainly for interior and exterior trim in automobiles and outdoor units of split air-conditioners, as insulation in buildings and floors, and as carpet underlay.
It is also involved in the manufacture of, and trade in, non-woven fabric used in the disposable hygienic products industry, including for the manufacture of top and bottom layers of diapers and sanitary napkins, wet wipes, and surgical apparel including caps, masks and gowns.
OPB's initial public offer involves a public issue of 50.778 million new 10 sen shares at an issue price of 20 sen per share.
Tan said OPB's major plan this year was to increase felt exports to Thailand. OPB currently supplies felt to such carmakers as Isuzu, Mazda and Honda in Thailand and Taiwan.
OPB currently had 70% market share of the local automotive felt market, including the Proton segment, he said.
Moving forward, he said, OPB would continue to expand its revenue base by strengthening its position as one the leading suppliers of felt to such carmakers as Proton, Perodua, Nissan, Honda and Toyota.
Tan said although OPB exported its products to Indonesia, there was still a lot of room for expansion in local operations. OPB commands 30% of the local market for non-woven fabrics.
OPB reported a profit after tax of RM3.7mil on turnover of RM26.5mil for the financial year ended Dec 31, 2003.
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