KUALA LUMPUR (Oct 13): Logistic service provider Likei Logistic Services Bhd is planning an initial public offering (IPO) on Bursa Malaysia’s ACE Market to raise funds for business expansion.

According to its draft prospectus, the IPO will involve the issuance of 92.19 million new shares and an offer for sale of 51.63 million existing shares. The issue price has yet to be determined. In total, the listing will offer investors a 41.78% stake in the company.

Proceeds from the offer for sale will go to Keith Law Li Kit, its largest shareholder and non-independent non-executive director. Post-listing, his shareholding will be reduced from 59.63% to 28.66%.

Meanwhile, Likei will use funds raised from the sale of new shares to expand its fleet of commercial vehicles, build a new warehouse, and fund its working capital requirements.

Headquartered in Port Klang, Likei, through its subsidiaries, provides container haulage and other logistic services, freight forwarding services, and warehouse services.

For the financial year ended March 31, 2025 (FY2025), the company reported a profit after tax (PAT) of RM10.55 million on a revenue of RM37.12 million.

PAT margin for FY2025 was 30.23%, a slight decline from 31.45% in FY2024, but higher than the 28.33% recorded in FY2023.

Container haulage and other logistics services are the largest revenue contributor, accounting for RM25.45 million (68.56%) of its total revenue. This is followed by freight forwarding services at RM10.3 million (27.75%), warehouse services at RM1.03 million (2.77%), and trading of goods at RM344,000 (0.92%).

KAF Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.