KUALA LUMPUR (April 26): Rubber processor and trader Seng Fong Holdings Bhd is a step closer to being listed on the Main Market of Bursa Malaysia after obtaining the approval of the Securities Commission Malaysia (SC).

In a statement on Tuesday (April 26), Seng Fong managing director Er Hock Lai said the proposed listing will enhance the company's reputation and assist it in expanding its customer base globally, while allowing it to gain access to the capital market to raise funds for future growth opportunities.

“The listing also enables us to raise the funds we need for the 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 cost. We are also installing two solar system units to help us lower electricity cost as well as help us achieve our sustainability goals of reducing greenhouse gas emissions,” he added.

A portion of the proceeds from the listing will also be used for working capital and to repay bank borrowings.

Seng Fong's initial public offering (IPO) entails the issuance of up to 160.87 million shares, comprising a public issue of 90.81 million new shares and an offer for sale of up to 70.06 million shares.

“The IPO shares are divided into an institutional offering of up to 118.68 million shares representing 22.9% of the enlarged issued shares and a retail offering of up to 42.2 million shares representing 8.1% of the enlarged issued shares,” the company noted.

Hong Leong Investment Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.