KUALA LUMPUR: ACE Market-bound ACO Group Bhd, a distributor of electrical products and accessories, aims to raise RM16.2 mil from its initial public offering (IPO) on Bursa Malaysia slated for March 18, for future expansion.
Group managing director Tang Pee Tee @ Tan Chang Kim said the company plans to enter new markets and add more retail touch points across Peninsular Malaysia.
“Over the next two years, we will be setting up a new head office and distribution centre in Johor, adding seven new sales outlets and two distribution centres in other towns within Johor, as well as in new markets such as Negeri Sembilan, Kelantan, Terengganu, Pahang and Pulau Pinang,” said Tang at the company’s prospectus launch here today.
The company he said, will be widening its product range of third-party brands and own brand products in addition to upgrading its enterprise resource planning system and two online ordering systems.
“We will expand our in-house logistics fleet by purchasing three more trucks,” he added.
The company will also be growing its “UR Home Light” concept store outlets, one each in Kuala Lumpur and Johor Bahru, to tap into opportunities in the building and construction industry including renovation and interior fit-outs segment of the market.
From the IPO exercise, 25.9% or RM4.2 mil of the total proceeds would be used to set up new sales outlets and concept stores, and 15.4% (RM2.5 mil) for the setup of the new head office and distribution centre in Johor.
It will also be allocating 12.3% (RM2 mil) to purchase new trucks and upgrade its information technology system, 26.1% (RM4.2 mil) for working capital and 20.3% (RM3.3 mil) for listing expenses.
Upon listing on the Ace Market, the group will have a market capitalisation of RM84 mil based on the issue price of 28 sen and its enlarged share capital of 300 million shares.
Applications for the public issue are open today and will close on March 6.
The group distributes a total of 88 brands of electrical products and accessories comprising 85 third parties and three own brands.
It is also an authorised distributor for 10 brands of electrical products that include Schneider Electric, KDK, Hager, Omron, ABB, Panasonic, Ledvance, Maxguard, Siemens and Yaskawa. – Feb 27, 2020, Bernama
