JOHOR-based integrated logistics service provider Xin Hwa Holdings Berhad has announced it plan for expansion through an initial public offering (IPO), having signed an underwriting agreemeant with Public Investment Bank Berhad (PIVB).
Public Investment Bank is the principal adviser, sole underwriter and sole placement agent for XHH's IPO exercise on the deal that will result in Xin Hwa's listing on the Main Market of Bursa Malaysia Securities Berhad.
Barring unforeseen circumstances, the company is expected to launch its prospectus in June, said the Xin Hwa statement.
This will involve the sale of 37.78 million new ordinary shares and 16.22 million existing ordinary shares, totalling 54 million ordinary shares, said the Xin Hwa release.
There will be nine million shares available to the Malaysian public, three million shares available to eligible directors, employees and other persons who have contributed to the success of XHH,
There will be 18.22 million shares available to Bumiputera Investors approved by the Ministry of International Trade and Industry, with the remaining 23.78 million shares made available via private placement to selected investors.
"I believe this listing will enable XHH to strengthen its position in the logistics industry as it charts its future growth story," said XHH managing director Ng Aik Chuan.
"Being a listed entity, we hope to further increase confidence among our investors, stakeholders and customers while we continue to work towards enhancing the long-term value of our company by reinvigorating customers' attachment to our brand and providing quality services across all our business segments."
Mr Ng said the proceeds of the flotation to be raised from the IPO exercise would be predominantly utilised for XHH's business expansion over the next two years.
This includes the construction of a new warehouse in Pasir Gudang, as well as the expansion of XHH's fleet of vehicles.
Said Public Investment Bank CEO Eddie Fong Loong Seng: "This IPO will further strengthen XHH's financial position as it embarks on its next phase of their business expansion plans."
XHH provides land transport, warehousing and distribution, incorporating container haulage freight forwarding, customs brokerage as well the manufacture and fabrication of trailers.
The company employs 800 staff and runs 1,100 vehicles from a head office in Johor Bahru, three branch offices in Bukit Mertajam, Pulau Indah and Pasir Gudang, four site offices in Butterworth, Seremban, Gelang Patah and Johor Bahru and two warehouses in Johor Bahru and Skudai.
WORLD SHIPPING
10 May 2015 - 19:37
Xin Hwa Holdings signs on Public Investment Bank to pave way to IPO
JOHOR-based integrated logistics service provider Xin Hwa Holdings Berhad has announced it plan for expansion through an initial public offering (IPO), having signed an underwriting agreemeant with Public Investment Bank Berhad (PIVB).
WORLD SHIPPING
10 May 2015 - 19:37
Xin Hwa Holdings signs on Public Investment Bank to pave way to IPO
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