Listing Detail:
Listing Sought: Main Market
Issue Price: RM 0.70
Par Value: -

Dates:
Offer Period Open: 11-06-15
Offer Period Close: 17-06-15
Tentative listing date: 30-06-15

Number of shares:
Public Issue: 37,782,000
Offer for Sale: 16,218,000
Private Placement: 42,000,000

Stock Code: XINHWA

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING PUBLIC ISSUE OF 37,782,000 NEW ORDINARY SHARES AND OFFER FOR SALE OF 16,218,000 SHARES AT AN ISSUE / OFFER PRICE OF RM0.70 PER SHARE

Company Overview

In the news

Xin Hwa en route to the Main Market of Bursa Malaysia

KUALA LUMPUR: Xin Hwa Holdings Bhd, an integrated logistics service provider based out of Johor yesterday launched its Prospectus pursuant to its Initial Public Offering (IPO) exercise in conjunction with its listing on the Main Market of Bursa Malaysia.

The securities of the company have been classified as syariah-compliant.

Through the IPO exercise, XHH intends to raise approximately RM26.45 million and will be used for business expansion (60.89 per cent), repayment of bank borrowings (14.18 per cent), working capital (11.65 per cent) and defrayment of listing expenses.

The IPO exercise entails a public issue and offer for sale of 37.78 million new ordinary shares and 16.22 million existing ordinary shares respectively, totalling 54 million ordinary shares at an issue price of RM0.70 per share.

Pursuant to the IPO exercise, there will be nine million shares available for application by the Malaysian public, three million shares available for application by eligible directors and employees, while 18.22 million shares will be available for application by Bumiputera Investors approved by the Ministry of International Trade and Industry.

The remaining 23.78 million shares made available for application by way of private placement to selected investors.

Public Investment Bank Bhd is the principal adviser, sole underwriter and sole placement agent for Xin Hwa’s IPO exercise.

Based on the issue price of RM0.70 per share and the enlarged issued and paid-up share capital of XHH of 180 million ordinary shares, the Company will have a market capitalisation of RM126 million.

Speaking at the launching, Ng Aik Chuan said: “This marks an important moment for the corporate history of Xin Hwa as we have reached the next phase of our IPO journey.

“We believe our strong fundamentals will put us in good stead and we are confident that we can deliver commendable performance in the coming years.”

Ng elaborated that the proceeds raised will be predominantly utilised for business expansion which includes the construction of a new warehouse in Pasir Gudang, Johor measuring approximately 220,000 sq ft and acquisition of additional 101 units of new vehicles such as prime movers and trailers.

The new warehouse is expected to commence operations in the third quarter of 2015 and the acquisition of vehicles will be done in stages over the next 24 months.

“Xin Hwa would continue to capitalise on its strengths to generate sustainable revenue from its existing business,” added Ng.

The close of application for the public issue is targeted on June 17, 2015 while the Company is slated to list on the Main Market of Bursa Malaysia Securities Berhad on June 30, 2015.

-- Borneo Post