Bursa nod for BCM Alliance’s IPO

PETALING JAYA: Distributor of laundry equipment and medical devices, BCM Alliance Bhd has obtained Bursa Malaysia’s approval for its initial public offering (IPO) on the ACE Market.
The proposed IPO involves the issuance of 84.25 million new shares in BCM representing 20% of the enlarged issued and paid-up share capital.
Of the 84.25 million new shares, 22 million new shares will be made available to the Malaysian public via balloting, nine million new shares for its eligible directors and employees while the remaining 53.25 million new shares are earmarked for private placement to selected investors.
As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 42.13 million shares to selected investors by way of private placement.
“The IPO will facilitate BCM with greater financial flexibility to pursue future growth opportunities. Once we are listed, we will be placed on a much stronger footing to grow our commercial laundry equipment and medical devices businesses,” BCM managing director Liaw Chong Lin said in a statement yesterday.
BCM plans to use the proceeds from the IPO to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores throughout Malaysia and purchase new commercial laundry equipment and medical devices.
Part of the proceeds will also be used to fund its day-to-day working capital expenses and to defray listing expenses for the IPO.
The setting up of the chain of Speed Queen self-service launderette outlets is expected to provide BCM the opportunity to establish and to expand its market presence and customer base in the commercial laundry equipment industry.
It is also expected to enhance the company’s marketing and increase brand awareness of the Speed Queen brand in Malaysia.
Speed Queen is an established brand under Alliance Laundry Systems LLC, an international manufacturer of commercial laundry equipment listed on the New York Stock Exchange.
In August 2015, the BCM group was authorised to use the brand for self-service launderettes based on the brand’s store design, floor plan and layout. In September 2015, the group opened the first outlet in Taman United, Kuala Lumpur.
BCM is to be listed by October. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO.