KUALA LUMPUR: Guan Chong Bhd has refuted a report that it may want to scrap its plan for a secondary listing in Singapore in favour of selling a stake via a corporate exercise.
The cocoa processor said in a statement that the plans for a secondary listing remained intact.
“Speculation came from a news wire story today (yesterday) that Guan Chong's public offering in Singapore of up to 62 million shares would be scrapped if a significant stake in Guan Chong is sold to another company prior to the corporate exercise,” the Johor-based company said.
Bloomberg had yesterday reported that Guan Chong was considering selling a stake to another company instead and could scrap the planned share sale in Singapore if it reached a deal.
On this matter, Guan Chong said that “in conjunction with the listing exercise in Singapore, Guan Chong has undertaken investor roadshows to target not only institutional investors but also potential strategic investors with long-term view.
“The shares will also be offered to Singapore public investors.”
The share sale of up to 62 million shares represented about 18% of Guan Chong's enlarged share capital of 350.7 million upon completion of its listing exercise, the statement said.
To recap, Guan Chong had in April announced plans for a secondary listing on the Singapore stock exchange to facilitate access to the island nation's capital market, expand and diversify its shareholder base, and to enhance its profile in the international market.
The company said that of the 62 million shares offered, 31 million were new shares and another 31 million were vendor shares that would be offered by certain existing shareholders.
Guan Chong had also launched a preliminary prospectus with the Monetary Authority of Singapore last month and it is currently undertaking investor roadshows in both Singapore and Hong Kong.
Guan Chong is one of the largest cocoa processors in the region, with total annual grinding capacity of 200,000 tonnes per year. It has grinding facilities in Pasir Gudang, Johor and Batam, Indonesia.
Its shares, which are listed on the Main Market of Bursa Malaysia, received a boost after the company reiterated its commitment for the secondary listing, gaining 5 sen at its close to hit RM3.14.
GUANCHG : [Stock Watch] [News]
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