Sin-Kung Logistics Bhd executive directors Adeline Ong, Angeline Ong, chairwoman Tan Soo Mooi, managing director Alan Ong, M&A Equity Holdings Bhd MD Datuk Bill Tan, M&A Securities Sdn Bhd head of corporate finance Gary Ting and Sin-Kung Logistics Bhd general manager Ameline Ong at the launch of the prospectus on Thursday. (Photo by Sam Fong/The Edge)

KUALA LUMPUR (April 18): Sin-Kung Logistics Bhd has started taking orders from investors for its initial public offering (IPO) that may raise up to RM39.5 million ahead of its listing on Bursa Malaysia’s ACE Market.

The IPO, priced at 13 sen apiece, involves public issue of 200 million new shares and an offer for sale of 103.5 million existing shares, according to the prospectus unveiled on Thursday. All in all, the IPO is offering up to a 25.3% stake in the company.

Applications for the IPO will close on May 2 and listing has been scheduled for May 15.

Sin-Kung Logistics currently owns about 460 commercial vehicles for trucking, container haulage, warehousing and distribution, as well as other logistics-related businesses. The company also operates five warehouses in the central and northern regions of Peninsular Malaysia.

The public issue consists of 60 million shares to the public, and 45 million shares to eligible persons, with the remaining 95 million shares reserved for private placement to Bumiputera investors.

Proceeds from the public issue totalling RM26 million have been earmarked for the expansion of warehousing and distribution services, repayment of bank borrowings, purchase of commercial vehicles, working capital, and to defray estimated listing expenses.

The offer-for-sale tranche meanwhile sets aside 55 million existing shares for Bumiputera investors, and another 48.5 million shares for selected investors, both to be done through private placement.

The sale of existing shares is expected to gross RM13.5 million, which will go entirely to the selling shareholders Sin-Kung managing director Alan Ong and his sister Angeline Ong, who is an executive director.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.