Malaysia’s aerosol spray paint maker Samurai 2K Aerosol will list on the Singapore stock exchange (SGX) through a placement offer to raise gross proceeds of $2.78 million, the first listing of this year at city-state’s stock exchange.
Launching its offer document on Tuesday at the SGX, the spray paints maker said, it is offering 20 million new shares at 20 cents each payable in full on application. While the application list will close on January 12, the trading is expected to start on January 16.
Based on the placement price, from the gross proceeds after deducting estimated placement exercise expenses, the company will raise a net proceed of approximately $1.63 million.
From the net proceeds, about $835,056 will be used by the company to upgrade its Johor plants and also capacity expansion with higher production lines. The firm will also buy new equipment to reduce reliance on labour. About $800,433 will be used for working capital requirements.
Headquartered in Malaysia, the company makes aerosol coating with a focus on high performance coating solutions for the automotive refinishing and refurbishing industry. The products are manufactured in our production facility located in Johor and are distributed in more than four countries including Malaysia, Indonesia, Thailand and Philippines, according to the offer document.
With the two wheeler market expected to grow, the company expects a better market for its products in the coming future. Among its competitors are Nippon Paint and Aeromix Distribution.
The company posted a net profit of MYR5.4 million in the year ended last March 31, 2016 as compared to MYR1.9 million in the same period the previous year. The company’s revenue was recorded at MYR30.6 million in the period as compared to MYR19.1 million in the previous year.