Published on: Thursday, December 29, 2005 |
Kuala Lumpur: Imaspro Corporation Bhd hopes to raise RM12.8 million from its initial public offering (IPO) of 17.065 million new shares for its expansion plans.
Its managing director C.H. Tong said RM5.5 million from the proceeds would be utilised to acquire property, RM3.5 million to purchase plant and machinery, RM1.7 million for listing expenses and RM2.1 million for working capital.
"This listing will provide us with the necessary capital to strengthen our competitive edge on three fronts, namely manufacturing capabilities, product development activities at our 43-acre in-house research and development centre in Jasin, Melaka, and our presence in the global market," he said.
He was speaking to reporters after the launch of the company's prospectus here Wednesday.
Imaspro, which manufactures pesticides and plant micronutrients, is expected to make its debut on the Second Board of Bursa Malaysia Securities on Jan 20, 2006.
The company's main products are glyphosate-based herbicides, fungicides, insecticides and plant micronutrients.
It has 125 pesticides registered with the Malaysian Pesticide Board and 65 pesticides registered abroad. To date, the company has 16 overseas product registrations pending from the relevant authorities.
Imaspro's IPO comprises a public issue of 17.065 million new shares and an offer for sale of 3.935 million existing shares, totalling 21 million shares at an IPO price of 75 sen per share.
Tong said the company planned to purchase a piece of land with building in Port Klang for its second manufacturing plant to cater to its future growth and expansion, including the production of new pesticide products.
The proposed acquisition is expected to be completed by the middle of next year.
Imaspro also aimed to increase its export portion to 45 to 55 percent by 2006 from 32 percent currently by expanding its market to the Philippines, Dominican Republic, Hungary and Romania.
The company's products have been exported to about 30 countries, including Russia, Bulgaria, the Netherlands, Japan, Taiwan, Vietnam, Thailand, Indonesia, Saudi Arabia, South Africa and Australia.
For the financial year ended June 30, 2005, Imaspro posted a consolidated profit after tax of RM7.46 million on the back of RM63.1 million in turnover.
The company has forecasted a profit after tax of RM8.46 million in the coming financial year, excluding the negative goodwill recognised. - Bernama
