KGW IPO Shares Oversubscribed By 50.45 Times

KUALA LUMPUR, 21 July 2023 – KGW Group Berhad (“KGW” or the “Group”), a 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, is pleased to announce that the share allocation to the Malaysian public from its IPO has been oversubscribed by 50.45 times.

KGW’s IPO comprises a public issue of 79,661,800 new ordinary Shares (“Issue Shares”) made available for application in the following manner: -

·         24,140,000 Issue Shares available for application by the Malaysian Public;

·         9,656,000 Issue Shares reserved for application by the eligible directors and employees as well as persons who have contributed to the success of the Group (“Eligible Persons”);

·         7,241,800 Issue Shares by way of private placement to selected investors; and

·         38,624,000 Issue Shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, Malaysia (“MITI”);

and an offer for sale of 43,452,000 Offer Shares by way of private placement to selected investors and Bumiputera investors approved by MITI.

A total of 11,329 applications for 1,241,957,600 Issue Shares with a value of RM260,811,096 were received from the Malaysian Public, representing an oversubscription rate of 50.45 times. From the Bumiputera category of this Issue, a total of 6,868 applications for 624,489,600 Issue Shares were received, representing an oversubscription rate of 50.74 times, whilst a total of 4,461 applications for 617,468,000 Issue Shares were received under the other Malaysian Public category, representing an oversubscription rate of 50.16 times.

Meanwhile, the total of 9,656,000 Issue Shares available for application by the Eligible Persons were fully subscribed.

Managing Director of KGW, Dato’ Roger Wong said, “We are humbled by the overwhelming response from investors that are interested in us. This further shows that we have gained positive recognition for our improving fundamentals, and with our bright prospects, we firmly believe that we can drive the Group’s growth to the next level. We look forward to unlocking more potential of the Group in order to maximise value creation for our stakeholders. In addition, we are also proud to say that our existing investors had strong belief in the long-term prospects of the overall logistics industry.”

Head of Corporate Finance of TA Securities Holdings Berhad (“TA Securities”), Mr. Ku Mun Fong said, “The response to KGW’s IPO is a reflection of investors' appetite for a company like KGW with strong fundamentals coupled with prospects for growth pivotal in the nation economy building logistics industry. Further, with its listing on the ACE Market of Bursa Securities, KGW is poised to ride on the prospects and growth in the logistics requirements in various different parts of the world particularly in and out of Malaysia.”

TA Securities, being the Principal Adviser, Sponsor, Underwriter and Placement Agent in conjunction with the IPO, has confirmed that the 28,967,800 Issue Shares by way of private placement to selected investors have been fully placed out.

The Company is expected to list on the ACE Market of Bursa Securities on 1 August 2023.