The rubber processor has made the announcement it has obtained the approval of the Securities Commission Malaysia (SC) to list on the Main Market of Bursa Malaysia Securities Berhad.
Seng Fong has been principally involving in the processing of Standard Malaysia Rubber and premium grade block rubber as well as trading in block rubber, where its customers are mainly tyre manufacturers or international rubber traders since 1986. It also operates a Malaysian Rubber Board-approved laboratory for the testing, grading and certification of the processed block rubbers.
The listing exercise involves the initial public offering of up to 160.87 million ordinary shares comprising a public issue of 90.81 million shares and an offer for sale of up to 70.06 million shares, according to Seng Fong’s draft initial public offering (IPO) prospectus posted on the SC’s website
The IPO shares are divided into an institutional offering of up to 118.68 million shares representing 22.9% of the enlarged issued shares and, a retail offering of up to 42.20 million shares representing 8.1% of the enlarged issued shares.
“The listing enables us to raise the funds we need for the installation of a biomass system that will provide a source of fuel for our processing operations while at the same time achieve cost savings by reducing overall fuel costs. We are also installing two solar system units to help us lower electricity cost as well as help us achieve our sustainability goals of reducing greenhouse gas emissions,” Managing Director of Seng Fong, Mr. Er Hock Lai said.
“A portion of the proceeds from the listing will also go to working capital needs, which will include increasing
production capacity and repaying bank borrowings, which includes a term-loan for the Solar Systems
installation.”
