KUALA LUMPUR (Sept 11): Jishan Bhd (KL:JISHAN) has filed for a share sale as part of the packaging products maker’s listing transfer from the LEAP Market to the ACE Market.

Funds raised from the initial public offering (IPO) have been earmarked for an offset printing machine, an automated storage and retrieval system as well as other machineries, according to the draft prospectus filed to Bursa Malaysia.

“The acquisition of the offset printing machinery will enable our group to reduce reliance on external offset printing services, improve efficiency and expand capability to meet growing demand for high-quality printed packaging,” Jishan said.

The company, which mainly manufactures paper and plastic packaging products as well as distributes disposable products, was listed on the LEAP Market in February 2021. Last year, the company made a net profit of RM8.8 million on a revenue of RM141.88 million.

Nearly 98% of the revenue was generated in Malaysia with the rest from markets like China, Denmark, Thailand, the US, Australia and Singapore. Customers include manufacturers and distributors in industries, including electrical and electronics, food and beverage, and healthcare.

The planned IPO also comes with an offer for sale of existing shares, of which proceeds will accrue entirely to Jishan Capital Sdn Bhd, the private of managing director Ng Eng Siong and his family, as well as executive directors Ang Chee Beng and Cheah Teik Hee.

All in all, the listing is offering 25.6% in the company currently worth RM162.25 million on the LEAP Market, a board designed for early stage and emerging small firms.

As trading on the board is restricted to sophisticated investors, a listing transfer to the ACE Market requires a company to provide an exit offer and undertake a public issue of shares.

Kenanga Investment Bank is the adviser, sponsor, underwriter and placement agent for the IPO.