PRG eyes international funding opportunities, global investors via Hong Kong listing

PETALING JAYA: PRG Holdings Bhd which is on track to list its manufacturing arm on the bourse of the Hong Kong Stock Exchange by the end of this year, sees the city state as ideal for the exercise due to its reputation as a leading financial hub.
“Investors that go into Hong Kong are very savvy. They are global investors.They would have scrutinised your financial statements balance sheet on the type of business you’re in before they invest,” PRG’s chairman Datuk Michael Lim Heen Peok said.
The group is in the process of listing its manufacturing business, Furniweb Holdings Ltd on the exchange’s Growth Enterprise Market.
As a company listed on the Hong Kong Stock Exchange, he said it will be subjected to higher scrutiny by investors as compared to most exchanges.
Besides having access to credible clients, the group also sees the listing as a gateway to tap into international funding options, as well as to “cheaper cost of financing”.
The company markets 80% of its products overseas, and is planning to expand its manufacturing plant in Vietnam. It currently has three plants in Malaysia and four in Vietnam.
Jimmy Cheah, managing director of the manufacturing division said the listing could support the group’s plans for expansion in that sector.
This, according to him could provide the group with financial resources to execute the plans, while opening doors to more markets in the world and to expand its core technology.
As for its property development arm, PRG has two projects namely the Picasso Residence in Jalan Jelatek, Kuala Lumpur which is ongoing and a property development on 6.48 acres of leasehold land in Subang U5, Selangor. Both of these are on a joint ventures.
According to its annual report, PRG stated that its preference lies with embarking on joint ventures with land owners which it opines can be executed almost immediately as opposed to the strategy of acquiring land banks for development, which is deemed as time consuming.
The company’s focus going forward will be on developing property on a joint venture basis as well as developing affordable housing.