Packaging product manufacturer GW Plastics Holdings Bhd’s initial public offering (IPO) was oversubscribed by 3.7 times.
In a statement yesterday, GW Plastics said it had received a total of 3,050 applications for 55.6 million shares with a total value of RM42.3 million for the public tranche of 11.8 million shares under the group’s IPO. The company is targeted to list on Oct 18.
GW Plastics CEO Lim Kok Boon said the over-subscription was a reflection of the stakeholders’ confidence and affirmation towards the company’s leading position in the flexible packaging products industry.
“Going forward, we will strive to further grow the business in the local and international markets, focusing on value-add products. In addition, our production capacity expansion will help bring the group to greater heights,” said Lim.
GW posted a net profit of RM15.3 million for the FY09 ended Dec 31, up 73% from the previous year’s RM8.9 million, despite lower revenue of RM255.5 million against RM292.8 million a year ago.
The export market contributes 51.8% of its total sales.
GW Plastics said Japan was its largest export destination, contributing 16.6% of total revenue for the year while other key markets included highly stringent countries such as Singapore, South Korea, Australia, New Zealand and Denmark.
Its clientele spans over 350 companies worldwide, across various industries such as food and beverage, logistics, industrial, pharmaceutical, construction, retail, agriculture, petrochemical and medical sectors.
GW Plastics’ IPO exercise consists of a public issue of 16 million new ordinary shares, and an offer-for-sale of 45.42 million vendor shares at an issue/offer price of 76 sen each.
Of the 61.42 million shares available, 11.8 million is offered to the public, 17.82 million shares for private placement to selected investors, 8.2 million shares for eligible directors, employees and business associates of GW and its subsidiaries and 23.6 million shares for Bumiputera investors approved by the Ministry of International Trade and Industry.
The IPO raised RM12.2 million, of which RM9 million will be allocated for the building of the new factory block, RM1 million for working capital, and the balance RM2.2 million to defray listing expenses.
This article appeared in The Edge Financial Daily, October 7, 2010.
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