Kimlun Corporation hopes to raise RM62mil from IPO

  • Business
  • Monday, 14 Jun 2010

KUALA LUMPUR: Kimlun Corporation Bhd, a one-stop engineering and construction services provider, plans to raise gross proceeds of RM62.08 million from its initial public offering (IPO), chief executive officer Sim Tian Liang said on Monday.

The proceeds would be utilised, among others, for the construction of factories and purchase of machinery, he told reporters after the company's prospectus launch here on Monday.

Part of the proceeds would also be used to purchase a parcel of industrial land, for working capital and listing expenses, he said.

On the company's plans, Sim said the company planned to explore business opportunities in the Middle East and South East Asia to provide its Industrial Building System (IBS), construction services and concrete products.

He said that cities such as Dubai, Abu Dhabi and Doha were building underground train transits that required pre-cast concrete tunnel segments.

As such, the company planned to set up a branch in Abu Dhabi to initiate its presence there within the next three years.

Sim said the company was also exploring opportunities to export pre-cast tunnel segments and jacking pipes to Australia as well as having a business presence in East Malaysia in the next two years to tap opportunities there.

As at April 30, 2010, Kimlun's order book is worth RM730.90 million.

Kimlun specialises in infrastructure and building construction, construction management, provision of IBS and manufacture of concrete products. It is an investment holding company with three wholly-owned subsidiaries, comprising Kimlun Sdn Bhd, SPC Industries Sdn Bhd and I-Buildtech Solutions Sdn Bhd.

AmInvestment Bank Bhd is the adviser, sole underwriter and sole placement agent for the listing exercise which will involve a public issue of 64 million new ordinary shares of RM0.50 each and an offer for sale of 11.3 million ordinary shares of RM0.50 each.

The public issue and offer for sale shares are priced at RM0.97 per share.

Of the 64 million new shares, 11.45 million shares will be for application of Malaysian public, 1.5 million shares for eligible employees and/or business associates of Kimlun and its subsidiaries, 33.05 million for private placement to selected investors and 18 million shares for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

Of the offer for sale of 11.3 million shares, 0.38 million shares will be for application by eligible directors of Kimlun, 5.46 million shares for private placement to selected investors and 5.46 million shares for private placement to Bumiputera investors approved by MITI.

The offer period for the IPO will begin on June 14 and close on June 21, 2010.

The entire enlarged issued and paid-up capital of Kimlun is RM114.5 million, comprising 229 million ordinary shares of RM0.50 each, and the company is scheduled to be listed on Bursa Malaysia's Main Market by end of this month. -- BERNAMA

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