Chin Hin plans IPO on main market

PETALING JAYA: Building material player Chin Hin Group Bhd is en route to a listing on the main market of Bursa Malaysia.
In a draft prospectus exposure on the Securities Commission's website, the company said its initial public offering (IPO) entails a public issue of 63.2 million new ordinary shares of 50 sen each, of which 25.29 million shares will be made available for the Malaysian public, 6.4 million shares for eligible directors and employees, 31.50 million shares by way of placement to identified investors.
There will also be an offer for sale of 65 million existing shares, of which 14.41 million and 50.59 million shares by way of placement to identified investors and bumiputra investors approved by the Ministry of International Trade and Industry respectively.
Chin Hin is principally involved in the distribution of building materials and provision of logistics, supply of ready-mixed concrete, manufacturing of autoclaved aerated concrete and precast concrete products, wire mesh and metal roofing systems.
It intends to penetrate into foreign markets, expand its manufacturing and production facilities as well as widen and expand its product range.
Chin Hin plans to use proceeds from the IPO to purchase a new plant, equipment and machinery as well as the expansion of its manufacturing facility; repay bank borrowings; and for working capital requirements.
For eight months ended August 31, 2014, it registered a net profit of RM16.32 million.