Company Background

The Company was incorporated in Malaysia under the Act on 23 March 2023 as a private limited company under the name of Kucingo Sdn Bhd. On 24 July 2023, they changed their name to Kucingko Sdn Bhd. They subsequently converted into a public limited company on 11 September 2023 and assumed their present name of Kucingko Berhad to facilitate their Listing. They are primarily involved in 2D animation production services which is undertaken by the subsidiary, Inspidea. 

 As at the LPD, the Group’s structure is as follows:

Use of proceeds

1. Capacity expansion - 59.22% (within 36 months)

2. USA sales office - 14.59% (within 36 months)

3. Working capital  - 14.19% (within 12 months)

4. Listing expenses  - 12.00% (immediate)

Capacity expansion - 59.22% (within 36 months)

The Group intends to utilise proceeds raised of approximately RM17.77 million to increase capacity by setting up branch offices in Sabah and Sarawak to source and tap into talent pools in animation production there, as well as refurbishment of existing production facilities in Selangor to expand their production workforce. 

The details of utilisation for the capacity expansion are as follows:

USA sales office - 14.59% (within 36 months)

The Group intends to utilise proceeds raised of approximately RM4.38 million to set up a sales office in the USA to better facilitate client management in that geographical region and to be more effective in sales and marketing initiatives including more frequent physical interactions and engagement, and better networking opportunities with potential customers. 

Presently, although they do not have physical presence or business entity in any of the foreign countries, the Group was able to secure 2D animation production projects from customers in foreign countries including the USA. All their projects are carried out in Malaysia as all of their 2D animation production works are undertaken digitally, where they receive the pre-production package and they deliver their completed production works through the internet. Communications with their customers in the USA are mainly through e-mails and virtual meetings. 

The sales office in the USA is intended to serve 2 purposes including addressing potential business opportunities with prospective customers as well as continuing to serve the requirements of the Group’s existing customers in North America. By having a physical presence in the USA, they are able to enhance their customer service coverage efforts, increase our business development activities as well as widen the channel that potential customers could reach them. They will be able to have face-to-face interactions and provide localised support to potential customers within North America. As at the LPD, the Group is still in the process of identifying a suitable location in Los Angeles for the establishment of the branch office. The proceeds raised would be used for:

Working capital  - 14.19% (within 12 months)

The Group intends to utilise proceeds raised of approximately RM4.26 million for its working capital requirements which may include, but are not limited to general selling and distribution expenses, and general administrative expenses including staff-related costs of the Group. 

While the breakdown of such use has not been determined at this juncture and will be dependent on the operating and funding requirements at the time of utilisation, on a best estimate basis, the allocation of the proceeds to be utilised for each component of the working capital are as follows: 

Business model

The business model is illustrated as follows:

Click here to continue the IPO - Kucingko Bhd (Part 2)​​​

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