XIAMEN: China-based Telent Outdoor (Hong Kong) Technology Co Ltd plans to set up a retail point-of-sale (POS) in Kuala Lumpur as a springboard to penetrate other South-East Asian markets by the third quarter of this year.

According to the Independent Market Research report, Telent, which specialises in design, manufacture, marketing, brand management and distribution of its branded outdoor apparel, footwear and equipment, is ranked second in the China outdoor outfits market in terms of retail sales value.

Group executive director, Hui Tang Tat, said for financial year ended March 31, 2014, the company recorded a revenue of RM575.5 million and pre-tax profit of RM144.8 million amid production capacity expansion.

"The product sales mix percentage in outdoor apparel and outdoor footwear each posted 43.8% and posted 49.5% respectively, while the equipment product registered 6.7%, last year.

Hui told reporters this after a media visit to the company's manufacturing and office last Friday

As of October 2014, Telent has 817 retail POS and 23 network distributors across China.

"The Malaysian market is competitive and building our presence there will offer us a platform and opportunity to expand in this region.

"Perhaps in the next five to 10 years, we can go down the road to tap other Asian markets as we want our brand to be globally recognised," Hui said.

On its listing plan, Hui said, the group has submitted the draft prospectus to the Securities Commission through a Bermuda-incorporated firm.

He, however, declined to reveal how much it aimed to raise from the initial public offering.

Hui said 45% will be allocated for distribution network and retail POS expansion with 10 per cent for advertising and branding.

The remainder will be used to strengthen product research and development (10%), working capital (25%) and listing expenses (10%).

Telent's IPO will entail the issuance of 103.39 million new shares of US$0.10 each, which represent 14.2% of its enlarged issued and paid-up capital.

There will be 30.62 million shares available for subscription by the Malaysian public, while 72.77 million have been allocated for private placement to selected investors based on the draft exposure prospectus. - Bernama