Company Background

The Company was incorporated in Malaysia under the Act on 12 April 2023 as a private limited company under the name of Well Chip Group Sdn. Bhd. On 13 November 2023, the Company was converted into a public limited company and assumed its present name of Well Chip Group Berhad.

The Company is an investment holding company and through its subsidiaries, they are principally involved in the provision of pawnbroking services and business of retail and trading of jewellery and gold. As at the LPD, the company has 27 operating outlets, comprising 23 pawnshops and 4 retail outlets which are adjacent to its pawnshops.

Use of proceeds

1. Cash Capital for its existing 23 pawnshops - 72.0% (within 24 months)
2. Expansion of pawnshops - 23.2% (within 24 months)
3. Estimated listing expenses - 4.8% (Immediate)

Cash Capital for its existing 23 pawnshops - 72.0% (within 24 months)

The Group intends to utilise RM124.30 million, representing approximately 72.0% of the gross proceeds to be raised from the Public Issue, as Cash Capital for its 23 existing operating pawn shops.

Expansion of pawnshops - 23.2% (within 24 months)

The Group intends to utilise RM40.00 million, representing approximately 23.2% of the total gross proceeds to be raised from the Public Issue, for the initial set-up costs and working capital requirements for 7 new pawnshops.

The breakdown of the initial set-up costs and working capital for each of its 7 new pawnshops is set out as follows:

The Group intends to open 7 new pawnshops, being 5 pawn shops in Johor and 2 pawnshops in Melaka, subject to the issuance of pawnbroking licenses for the new pawnshops.

Business model

The business model is illustrated as follows:

The company is principally involved in:

1. provision of pawnbroking services where the company offers pledges-backed pawn loans with a short repayment period to its pawnbroking customers. Pawn loans are commonly defined as micro-loans provided against pledges such as gold, gold jewellery and luxury watches; and
2. retail and trading of jewellery and gold.

As at the LPD, the company has 27 operating outlets, comprising 23 pawnshops and 4 retail outlets which are adjacent to its pawnshops.

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