Sin-Kung Logistics inks IPO underwriting deal with M&A Securities

From left: M&A Securities head of corporate finance Gary Ting, M&A Equity Holdings Bhd managing director Datuk Bill Tan, Sin-Kung Logistics managing director Alan Ong and executive director Angeline Ong

KUALA LUMPUR: Sin-Kung Logistics Bhd has entered into an underwriting agreement with M&A Securities Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

In a statement, the integrated logistics service provider said the IPO entails a public issue of 200 million new shares and an offer for sale of 103.5 million existing shares.

Of the public issue, 60 million new shares will be made available to the Malaysian public via balloting, 45 million shares for its eligible directors, employees and persons who have contributed to its success under pink form allocations, while the remaining 95 million shares are reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

M&A Securities will underwrite a total of 105 million new shares made available to the Malaysian public and pink form allocations.

According to the statement, Sin-Kung Logistics is principally involved in the provision of trucking services with a focus on airport-to-airport road feeder services covering extensive network of airports across Peninsular Malaysia, Singapore and Thailand.

The company also provides container haulage services, warehousing and distribution services, licensed brokerage and forwarding services, express delivery services and cargo escort services to its customers.

Currently, Sin-Kung Logistics owns and operates approximately 460 commercial vehicles for the provision of its trucking, container haulage, warehousing and distribution as well as other logistics-related businesses.

The company also operates 5 warehouses which are strategically located in the central and northern regions.

Alan Ong, managing director of Sin-Kung Logistics, said the signing of the underwriting agreement marks a significant milestone as the company has come a long way with the expansion of its trucking business.

“We have successfully grown our business from our trucking services to comprehensive logistics related services across the logistics industry value chain across the years.

"The IPO exercise is timely for Sin-Kung Logistics as it will enable the company to gain access to the Malaysia capital markets to raise funds to facilitate the continued growth and development of our trucking services, container haulage services as well as warehousing and distribution services,” he added.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.