KGW GROUP SIGNS ON TA SECURITIES AS IPO UNDERWRITER

The Group’s listing exercise involves public issue of 79.66 million shares

KUALA LUMPUR (12 June) – KGW Group Berhad ("KGW Group" or the "Group"), an established provider of logistics services including ocean freight services, air freight services and freight forwarding services as well as warehousing and distribution of healthcare-related products and devices, has entered into an underwriting agreement with TA Securities Holdings Berhad (“TA Securities”) today for the Group’s upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Based on the prospectus exposure as published on the Bursa Securities website, KGW Group’s listing exercise involves the public issue of 79.66 million shares or 16.5% of KGW Group’s enlarged share capital and an offer for sale of 43.45 million shares representing 9.0% of KGW Group’s enlarged share capital at the IPO price.

The IPO shares will be allocated in the following manner:

Public issue

Malaysian public

·         24.14 million issue shares representing 5.0% of the enlarged share capital for application by Malaysian public, of which half will be set aside for bumiputera investors.

Eligible persons

·         9.66 million issue shares representing 2.0% of the enlarged share capital for application by eligible directors, employees and persons who have contributed to the Group’s success.

Private placement to selected investors

·         7.24 million issue shares representing 1.5% of the enlarged share capital made available by way of private placement to selected investors.

Private placement to bumiputera investors approved by Ministry of Investment Trade and Industry (“MITI”)

·         38.62 million issue shares representing 8.0% of the enlarged share capital made available by way of private placement to bumiputera investors approved by MITI.

Offer for sale

Private placement to selected investors

·         21.73 million offer shares representing 4.5% of the enlarged share capital made available by way of private placement to selected investors.

·         21.73 million offer shares representing 4.5% of the enlarged share capital made available by way of private placement to bumiputera investors approved by MITI.

TA Securities will underwrite the 24.14 million issue shares made available to the Malaysian public.

Managing Director of KGW Group, Dato’ Roger Wong said, “We have plans to diversify our geographical focus and services within our logistics services business and this IPO will help us in getting there. We are happy to work with TA Securities to expedite the listing exercise on the ACE Market. Our future plans include expanding the logistics services business, expanding warehousing and distribution services for healthcare-related products and devices and, seeking opportunities through providing e-commerce solutions supported by our logistics services.”

Head of Corporate Finance of TA Securities, Mr. Ku Mun Fong said, “We are looking forward to working with KGW Group on its listing exercise. The Group’s operations are based on an asset-light model as its strength lies in assisting customers in managing and planning their cargo shipment schedules around the world supported by a strong network of suppliers. KGW Group has a track record going all the way back to 2005 with an experienced team.”

As an asset-light logistics services provider offering experience and expertise, the Group has achieved RM195.42 million in revenue in FYE2021 compared to RM63.53 million in FYE 2020 with a gross profit margin of 16.88% and 14.19% respectively. 

KGW Group obtained Bursa Securities’ approval for the listing on 13 April 2023.