PETALING JAYA: Health and wellness equipment retailer Ogawa World Bhd will raise some RM32mil from its initial public offering, scheduled for next month, executive director Louis Chong said.
He said the company would use the proceeds for, among other things, market expansion, research and development, as well as land acquisitions.
“Our focus is on market expansion, with emphasis on both China and Vietnam, as they have a lot of potential,” Chong said.
He said this yesterday at an underwriting agreement signing for the company's listing on Bursa Malaysia main board.
Ogawa currently had a total of 107 sales and distribution outlets in Malaysia, Singapore, China and Hong Kong.
It also had 29 outlets through exclusive sole distributors in Indonesia, Australia and Vietnam, Chong said.
He added that the company was targeting to set up at least 20 more outlets within the next one year.
According to Chong, as at last year, about 21% of Ogawa's sales came from its overseas stores.
“We want to increase this to about 40% in three years,” he said.
For the financial year ended June 30, 2006, Ogawa posted after-tax profit of RM11.69mil on revenue of RM136.06mil.
Ogawa's public offering involves the offer for sale of 36 million ordinary shares to bumiputra investors and the issue of 17.2 million new shares to the public, directors and employees and persons who have contributed to the group's success as well as for private placement.
The par value would be 50 sen and the offer price RM1.
Chong said the health and wellness sector had continued to be fast growing, with the local industry reaching about RM300mil last year from RM130mil in 2002.
“This figure is expected to double over the next five years,” he said.
He said Ogawa enjoyed more than 40% market share locally.
“We will continue to invest in building our brand in the markets we are expanding into while maintaining our dominant position in Malaysia,” he said.
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