KGW Group inks underwriting agreement with TA Securities for IPO

From left: KGW Group Bhd executive director and chief operating officer Cheok Hui Yen, KGW managing director Datuk Roger Wong, TA Securities Holdings Bhd executive director operations Tah Heong Beng and TA head of Corporate finance Ku Mun Fong.

KUALA LUMPUR: KGW Group Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd for the group’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities.

“We have plans to diversify our geographical focus and services within our logistics services business and this IPO will help us in getting there. We are happy to work with TA Securities to expedite the listing exercise on the ACE Market.

“Our future plans include expanding the logistics services business, expanding warehousing and distribution services for healthcare-related products and devices and, seeking opportunities through providing e-commerce solutions supported by our logistics services,” managing director Roger Wong said in a statement.

KGW is a logistics services provider including ocean freight services, air freight services and freight forwarding services as well as warehousing and distribution of healthcare-related products and devices.

Based on the prospectus exposure as published on the Bursa Securities website, KGW Group’s listing exercise involves the public issue of 79.66 million shares or 16.5% of KGW Group’s enlarged share capital and an offer for sale of 43.45 million shares representing 9.0% of KGW Group’s enlarged share capital at the IPO price.

TA Securities will underwrite the 24.14 million issue shares made available to the Malaysian public.

TA Securities head of corporate finance Ku Mun Fong said: “We are looking forward to working with KGW Group on its listing exercise. The group’s operations are based on an asset-light model as its strength lies in assisting customers in managing and planning their cargo shipment schedules around the world supported by a strong network of suppliers. KGW Group has a track record going all the way back to 2005 with an experienced team.”

KGW achieved RM195.42mil in revenue in FY21 compared to RM63.53mil in FY20 with a gross profit margin of 16.88% and 14.19% respectively.

KGW Group obtained Bursa Securities’ approval for the listing on 13 April 2023.