KUCINGKO BERHAD RECEIVES BURSA SECURITIES’ GREEN LIGHT FOR ACE MARKET LISTING

Kucingko Berhad Chart Course for Growth via ACE Market Listing, Enhances Market Presence

KUALA LUMPUR, 30 APRIL 2024 – Kucingko Berhad (“Kucingko” or the “Group”), an established 2D animation production services provider, is thrilled to announce the Group’s forthcoming debut on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). This momentous IPO is poised to release approximately 200.0 million ordinary shares, encapsulating 40.0% of its enlarged number of issued shares, where an equal portion of 100.0 million shares each are available under the public issue and offer for sale.

Rooted in Malaysia, Kucingko, via the Group’s wholly-owned subsidiary Inspidea Sdn. Bhd. (“Inspidea”), prides itself on its 2D animation production including animated series and animated short films, completing 59 projects worth RM63.22 million in total during the financial years ended 31 December 2020, 2021, 2022, and 6-month financial period ended 30 June 2023, with over 4,617 minutes of content that captivates audiences worldwide.

These animations, crafted through digitally drawn 2D images, have not only transcended geographical boundaries but have also resonated deeply with diverse cultures, The Group derives almost 100% of its revenue from providing animation production services, primarily in international markets, including North America, Europe, and Asia Pacific. The Group emphasises its proficiency in animation techniques, and deep understanding of content owners or producers, making Kucingko a fast-growing name in the 2D animation industry.

Mr. See Chin Joo, Executive Director of Kucingko Berhad, expressed his excitement on the IPO, stating, "Securing approval for our IPO on the ACE Market is a major milestone, because this will be the first animation production studio to be listed on Bursa. By setting the precedence, we hope to inspire other Bursa ready companies in the creative industry to follow suit.

This marks the beginning of an exciting new chapter for us, as we are now poised to harness the potential of the capital markets to fuel our ambitious expansion plans, both within Malaysia and internationally. With proceeds from the IPO, we plan to elevate our production capacity, deepen our business network in United States (US) and to reinforce our market leadership, thereby enhancing shareholder value. Specifically, a significant portion of the proceeds will be allocated towards increasing our production capacity by setting up branch offices in Sabah and Sarawak. We are confident in tapping new talent pools from those two states to complement our current Kelana Jaya’s office with 260 artists”.

He added “This expansion is not just about capacity; it’s about deepening our business relationships with our existing clients, and expanding the clientele network in the USA, Because of this need, part of the proceeds will be strategically used to establish a sales and marketing office in the USA, enabling us to be closer to our largest market and facilitate better client management and engagement. Lastly, the remaining portion of the proceeds will be earmarked for our working capital requirements.”

Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for Kucingko Berhad.