SINGAPORE: Household goods maker Cuckoo International has reduced its Malaysian initial public offering (IPO) price by 16.3% to RM1.08 a share from RM1.29, a stock exchange filing showed yesterday.
That would reduce the size of its IPO to about RM394mil from around RM471mil. Cuckoo International in April postponed the listing by two months citing global market volatility.
The IPO, initially planned for April 30, is scheduled for completion by June 24. Cuckoo International is 62.5% owned by South Korea-listed Cuckoo Homesys, its IPO prospectus showed.
In its draft prospectus, the company said it intends to allocate a significant portion of its IPO proceeds to fund product purchases for the expansion of its rental business.
“The growth of our rental business is dependent on the availability of cash flows to fund our purchase of products and pay our commissions.” — Agencies
