PRG unit Furniweb eyes business opportunities in China, Hong Kong

KUALA LUMPUR: The listing debut of PRG Holdings Bhd’s manufacturing unit, Furniweb Holdings Ltd on the Hong Kong Stock Exchange’s (HKSE) Growth Enterprise Market (GEM) will offer a window of opportunities to look for businesses in China, said Furniweb chairman Datuk Lim Heen Peok.

“If there are business opportunities or synergies to what we need and very close to what we do in terms of technology or product, we will explore them,” he told reporters after the listing ceremony here on Monday.

Furniweb debuted on the GEM board of HKSE at HK$0.60, a HK$0.10 premium over its issued price of HK$0.50 apiece. 

At the opening bell, the company saw 12.4 million shares traded.

Post-listing, PRG will hold 75% stake in the enlarged share capital of Furniweb.   

Lim said the company has also not discounted the possibility of migrating to the HKSE’s Main Board.   “The HK market is very vibrant and it is the platform for us to explore the capital market here and is a step towards moving to the Main Board in the future.

“However, we do not want to put a timeframe for it because we have just been listed on the GEM board and we will make natural and strategic progression towards it,” he said.

In a statement, the company said, based on the offer price of HK$0.50 each for a total of 126 million new shares, Furniweb has raised a total of HK$63 million (RM33mil).  

“The net proceeds, after deduction of underwriting fees and other expenses in relation to this listing exercise, which amounted to approximately HK$35.6 million (RM19.18mil), will be reinvested for the operations of Furniweb,” it said.

It said a total of HK$32.4 million (RM17mil) has been allocated to expand the output capacity of Furniweb’s products such as narrow elastic fabric, covered elastic yarn and seat belt webbing ? through the building of a new factory in Vietnam and acquisition of new machines.- BERNAMA