JOHOR BARU: Cocoa-derived food ingredients maker Guan Chong Bhd hopes to attract more institutional investors from its secondary listing in Singapore.
Chief executive officer and managing director Brandon Tay Hoe Lian said proceeds raised would be used to expand existing operations and for product development activities and capital needs.
He said the company had received a clearance from the relevant authorities to lodge its prospectus on the Singapore Exchange Securities Trading Lit (SGX-ST) website.
“In fact, we'll be starting our international roadshows today but I could not reveal to you where we're heading,'' he said after Guan Chong AGM.
Tay said the dual-listing would enable the company to access Singapore capital market and provide the flexibility to tap into additional sources of equity funding.
On April 9, Guan Chong announced that it was seeking a secondary listing on the main board of SGX-ST with a public offering of 62 million shares.
The shares comprise 31 million new ordinary shares of 25 sen par together with a restricted offer for sale of 31 million of its existing shares. The issue and offer price has been fixed at S$1.30 per share.
“An EGM will be held here on July 20 to seek approval from our shareholders and we are targeting to complete the exercise by the second half,'' said Tay.
Going forward, he said Guan Chong's plant in Batam would double its annual production capacity from 60,000 tonnes now to 120,000 tonnes in the second-half of 2013.
Tay said despite being around for 20 years, the company still considered itself a new kid on the block as there were other cocoa grinders in other parts of the world who had been around for 100 years.
He said the company's main challenge was to expand its customer base. “We'll continue to focus on our core activities of producing cocoa industrial ingredients and at the same time look at value-added cocoa-related ingredients,'' said Tay.
For the financial year ended Dec 31, 2011, Guan Chong posted RM125.89mil net profit on RM1.38bil revenue against RM101.14mil and RM1.16bil respectively in the previous year.
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