by TMR / graphic by TMR

SENG Fong Holdings Bhd, a rubber processor producing and trading Standard Malaysia Rubber (SMR) and premium grade block rubber, via its subsidiaries has obtained the approval of the Securities Commission Malaysia (SC) to list on the Main Market of Bursa Malaysia Securities Bhd.

According to Seng Fong’s draft initial public offering (IPO) prospectus posted on the Securities Commission Malaysia website, the listing exercise involves the initial public offering of up to 160.87 mil ordinary shares comprising a public issue of 90.81 mil shares and an offer for sale of up to 70.06 mil shares.

The IPO shares are divided into an institutional offering of up to 118.68 mil shares representing 22.9% of the enlarged issued shares and a retail offering of up to 42.20 mil shares representing 8.1% of the enlarged issued shares.

The institutional offering comprises of 64.87 mil IPO shares representing 12.5% of the enlarged issued shares to bumiputera investors approved by the Ministry of International Trade and Industry, 53.81 mil IPO shares representing 10.4% of the enlarged shares to other institutional and selected investors and the rest offered to Malaysian public retail investors.

Seng Fong is principally involved in the processing of SMR and premium grade block rubber as well as trading in block rubber, where its customers are mainly tyre manufacturers or international rubber traders.

The Company also operates a Malaysian Rubber Board-approved laboratory for the testing, grading and certification of the processed block rubbers.

Proceeds from the listing will be used for installation of a biomass system that will provide a source of fuel for our processing operations while at the same time achieve cost savings by reducing overall fuel costs, repaying bank borrowing and other working capitals.