Logistics company, KGW Group Berhad debuted today on the ACE Market of Bursa Malaysia Securities Berhad opening at RM0.23 per share which represents a premium of 9.5% over the initial public offering price of RM0.21 per share.
The group focuses on shipping cargo to and from the United States, which is KGW’s largest market whereas Mattroy Logistics handles shipments to and from other regions of the world. Meanwhile, KGW Medica specialises in warehousing and distribution of healthcare-related products and devices.
For the IPO, KGW raised a total of RM16.73 million from which RM10.00 million of the proceeds is allocated to repay bank borrowings in relation to the purchase of a freehold three-storey office building with an annexed two-storey warehouse located at Glenmarie, Shah Alam. RM2.00 million is allocated for the renovation of the Target Property. RM0.73 million of the proceeds will be used for working capital purposes while the remaining RM4.00 million is allocated for listing expenses.
Independent Non-Executive Chairwoman of KGW, Yang Mulia Tengku Faizwa Binti Tengku Razif said, “I would like to thank the entire KGW team and the IPO DDWG team for their hard work and diligence in bringing the Group to today’s listing. On behalf of KGW, we would also like to extend our appreciation to customers, business partners and suppliers who have supported us over the years.”
Managing Director of KGW, Dato’ Roger Wong said, “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.”
According to the independent market research report in the KGW’s prospectus, the Group generated revenue of RM228.0 million 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 RM62.20 billion in 2022.
The report noted that the Malaysian logistics industry is projected to reach RM66.25 billion in 2023 and grow to RM87.57 billion in 2027, expanding at a CAGR of 7.1% for the forecast period. In particular, the warehouse and storage market in Malaysia is forecast to reach RM2.58 billion in 2023 and expand at a CAGR of 8.2% to RM3.59 billion in 2027.
TA Securities Holdings Berhad 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.
