Sin Kung Logistics Aims To Raise RM26 Million From ACE Market IPO

Sin-Kung Logistics Berhad expects to raise RM26.0 million under its listing exercise on the ACE Market of Bursa Malaysia Securities BerhadI

The company said it seeks to utilise RM10.0 million (38.6%) of the initial public offering proceeds to fund its warehousing and distribution services’ expansion to meet the future rising demand from manufacturing and e-commerce sectors. 

Mr Alan Ong Managing Director of Sin-Kung Logistics, said the anticipated growth of the E&E industry and the exports of E&E products will not only drive the logistics and warehousing industry as a whole, but will particularly benefit the air freight industry as E&E products are generally high-value items and commonly transported through air freight. This will in turn create demand for trucking services, including airport-to-airport road feeder services and point-to-point trucking services, to facilitate the movement of E&E products between and to/from airports. 

As at 20 March 2024, Sin-Kung Logistics operates five warehouses, located in Shah Alam and Port Klang, Selangor, Bukit Mertajam, Butterworth and Bukit Minyak, Penang with an aggregate annual capacity of approximately 190,260 pallets.

Under the listing exercise,  Sin-Kung Logistics is issuing 200.0 million new shares and an offer for sale of 103.5 million existing shares, representing 16.7% and 8.6% of the enlarged share capital of Sin-Kung Logistics respectively, at an issue price of RM0.13 per share.

Based on the enlarged share capital of 1.2 billion shares, Sin-Kung Logistics is expected to have a market capitalisation of RM156.0 million after listing. 

Sin-Kung Logistics’ listing on the ACE Market of Bursa Securities is tentatively scheduled on 15 May 2024.  

M & A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.