Complaint derails FOCUS POINT listing

Malaysia's largest professional eyecare chain, Focus Point Holdings Bhd, had to delay its listing at the eleventh hour after an anonymous complaint about its business.
 

However, the group has refuted the allegations and are now waiting for the authorities to deliberate on its response.

"The board of directors believes that the allegations are adequately refuted and that the allegations were made with malicious intent to derail the company's listing plans and damage the group's business operations.

"The board wishes to assure the public that the group's business operations are sound and that its fundamentals are intact," it said in a late statement yesterday.

Focus Point said it was told of the complaint by the authorities and initial public offering (IPO) arranger OSK Investment Bank on the evening of July 23.

A last-minute listing postponement is rare. In 2006, GP Ocean Bhd scrapped its listing days before it was supposed to be listed.

The complaint against Focus Point listed three allegations. One is that it does not have enough qualified optometrists or opticians; the second cited instances where contact lenses were prescribed by unqualified personnel; and the third said the company only has 27 equipment known as K-metres against the total 144 outlets.

Focus Point said it has 152 optometrists and opticians; only qualified staff prescribe contact lenses; and all its outlets have the necessary optical equipment.

Only the media were present at Bursa Malaysia yesterday morning where they were expecting the customary listing ceremony. There were no representatives from Focus Point or OSK Investment Bank.

Its first statement in the morning said only that the listing was deferred and more information would be given in due course.

"The company wishes to apologise for any inconvenience caused and expects to provide further details in due course," Focus Point said in its second statement.

Focus Point also assured investors who subscribed to its IPO, saying that their monies are secure with OSK Investment Bank and Malaysian Issuing House Sdn Bhd.

Minority Shareholder Watchdog Group (MSWG) chief executive officer Rita Bushon, who spoke before Focus Point's late third announcement, believes there is a need for directors to provide clarification.

"A soon-to-be or newly-listed company cannot do this without reasonable explanation as this will inevitably create uncertainty and shake investor confidence.

"If they needed extra time, they should clarify the reason. After all, potential investors are entitled to know what is happening," Bushon told Business Times.

Bushon also stressed the role of investment banks in IPOs. "The banks should ensure that there is no lack of communication and ensure that the issue of governance is carried out by the companies."

Aberdeen Asset Management managing director Gerald Ambrose also stressed the importance of transparency by companies to boost investor confidence.

"It is a case of once bitten, twice shy. If a company pulls this kind of stunt, there is a high chance that investors might not want to invest with them again," Ambrose said.

By Lynn Omar