KGW Group Berhad which is targeting an ACE Market listing is aiming to raise RM16.73 Million from the IPO exercise via the issuance of 79.66 million shares at a price of RM0.21 per share.
The company is involved in logistics services including ocean freight services, air freight services, and freight forwarding services as well as warehousing and distribution of healthcare-related products and devices. It also launched its prospectus for the upcoming initial public offering.
The group plans to use RM2.00 million to renovate the Group’s three-storey office building and adjacent two-storey warehouse, RM0.73 million for working capital purposes, RM10.00 million to repay bank borrowings and RM4.00 million allocated for estimated listing expenses
Managing Director of KGW, Dato’ Roger Wong said, “We are an asset-light logistics provider that specialises in managing and coordinating the movement of goods within the supply chain. Instead of owning physical transportation assets such as ships, trains, or aircraft, we focus on providing more valuable services to our customers to facilitate their whole shipment process for better efficiency by leveraging partnerships and collaborations with existing transportation operators.”
KGW recorded revenue of RM43.38 million, RM63.52 million, RM195.42 million and RM229.70 million for the financial year ended 31 December 2019 (“FYE 2019”), FYE 2020, FYE 2021 and FYE 2022 respectively. The Group registered profit before tax of RM0.60 million, RM2.86 million, RM20.75 million and RM21.87 million for FYE 2019, FYE 2020, FYE 2021 and FYE 2022 respectively.
TA Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO while Eco Asia is the Financial Adviser
