KGW makes ACE Market debut at 23 sen/share

From left: KGW managing director Datuk Roger Wong, independent non-executive chairwoman Tengku Faizwa Tengku Razif, independent non-executive director Lim Joo Seng, executive director, chief operating officer Cheok Hui Yen, independent non-executive director Lee Li Choon and independent non-executive director Lean Sze Yau

KUALA LUMPUR: KGW Group Bhd opened for trading at 23 sen a share on its debut on the ACE Market of Bursa Malaysia, representing a premium of 9.5% over the initial public offering (IPO) price of 21 sen a share.

The logistics services provider raised a total of RM16.73mil from the IPO, of which RM10mil will be used to repay bank borrowings in relation to the purchase of a freehold three-storey building with an annexed two-storey warehouse in Glenmarie, Shah Alam.

It also allocated RM2mil for the renovation of the property while RM730,000 will go towards working capital and the remaining RM4mil for listing expenses.

“This is a significant milestone for the Group and evidence of how far we have come as a business to be a leading provider of logistics services in Malaysia.

"Through this listing, we have not only cemented our success, but we will continue to build on what we have to bring more value to our stakeholders," said KGW managing director Datuk Roger Wong in a statement.

According to the independent market research report in the KGW’s prospectus, the group generated revenue of RM228mil from its involvement in the Malaysian logistics industry, equivalent to 0.37% share of the total market size (GDP) of the logistics industry in Malaysia of RM62.2bil in 2022.

TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO while Eco Asia Capital Advisory Sdn Bhd is the financial adviser for the IPO.