Aco Group to raise RM16.2m from IPO


Aco Group Bhd managing director, Ir. Tang Pee Tee @ Tan Chang Kim said the company plans to enter new markets and add more retail touchpoints across Peninsular Malaysia.

KUALA LUMPUR: ACO Group Bhd, a distributor of electrical products and accessories, aims to raise RM 16.2mil from its proposed listing on the ACE Market. The tentative listing date is March 18.

Group managing director, Ir. Tang Pee Tee @ Tan Chang Kim said the company plans to enter new markets and add more retail touchpoints across Peninsular Malaysia.

"Over the next two years, we will be setting up a new head office and distribution centre in Johor, adding seven new sales outlets and two distribution centres in other towns within Johor, as well as in new markets such as Negeri Sembilan, Kelantan, Terengganu, Pahang, and Penang, ” Tang said at the company’s prospectus launch here.

The company will be widening its product range of third-party brands and own brands products in addition to upgrading its enterprise resource planning system and two online ordering system.

"We will expand our in-house logistics fleet by purchasing three additional trucks to support the company’s growing operations, ” he said.

The company will also be growing its "UR Home Light” concept store outlets, one each in Kuala Lumpur and Johor Bahru to tap into opportunities in the building and construction industry including renovation and interior fit-outs segment of the market.

From the IPO exercise, 25.9% or RM4.2mil out of the total proceeds would be used to set up new sales outlets and concept stores, 15.4% (RM2.5mil) for a new head office and distribution centre in Johor.

It will also allocate 12.3% (RM2mil) to purchase new trucks and upgrade Information Technology (IT) system, 26.1% (RM4.2mil) for working capital and 20.3% (RM3.3mil) for estimated listing expenses.

Upon listing on the Ace Market, the group will have a market capitalization of RM84mi based on the issue price of 28 sen and its enlarged share capital of 300 million shares.

Applications for the public Issue will close on March 6,2020.

The group distributes 88 brands of electrical products and accessories comprising 85 third parties and three own brands.

It is also an authorised distributor for 10 brands of electrical products that include Schneider Electric, KDK, Hager, Omron, ABB, Panasonic, Ledvance, Maxguard, Siemens and Yaskawa. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

ACO Group , IPO , ACE Market , electrical products

   

Next In Business News

Malaysia's IPI grew at 6.9% in 2022 driven by manufacturing, mining indices
LPI confident of tackling challenges in 2023
Bursa falls as economic jitters escalate
Australia central bank raises rates to decade-high, warns more to come
Ringgit opens lower against US$ as investors seek safe haven
MyEG hits limit down price on NIIse report, short-selling suspended
Foreign funds dump RM380.8mil in local equities
Market pulls lower from 1,500 level
Trading ideas: Sime Darby Plantation, Fraser & Neave, Tropicana Corp, KSL and Cypark Resources
Global corporate financial health likely to worsen this year

Others Also Read