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The Star – LKL International To Raise RM22.6mil From IPO

KUALA LUMPUR: LKL International Bhd, en route to listing on the ACE Market of Bursa Malaysia on May 16, plans to raise RM22.6mil in proceeds from the initial public offering (IPO).

LKL International’s unit, LKL Advance Metaltech Sdn Bhd, is principally involved in the provision of medical/healthcare beds, peripherals and accessories that are largely for hospitals, medical centres and various healthcare-related facilities.

In a statement on Tuesday, the company said based on the issue price of 20 sen apiece and the enlarged issued and paid-up share capital of LKL International of 428.8 million shares, it would have a market capitalisation of RM85.76mil.

“About 37.6% of the proceeds will be used for capital expenditure, whereby it plans to buy three Computer Numerical Control machinery, which will allow the group to increase its operating efficiencies and process inaccuracies by minimising wastage and lowering dependency on human labour.

“About 17.68% is allocated to repay bank borrowings, 33.65% as working capital and 11.06% to cover listing expenses,” it said.

On prospects, group general manager, Lim Pak Hong, said the local healthcare services industry remained resilient, as Malaysia registered a growth in total expenditure to RM41bil in 2013 from RM17.8bil in 2004.

“In the 11th Malaysia Plan, the Government announced its aim to achieve universal access to quality healthcare, and aims to increase the medical ratio from 1.9 beds to 2.3 beds per 1,000 population.

“We believe that these initiatives will augur well for the industry and for us,” he said.

According to the prospectus, which was launched on Tuesday, about 1.86% would be made available to Malaysian public through balloting, of which 50% would strictly be for bumiputra investors.

Approximately 3.08% would be allocated to eligible directors, employees and persons who contributed to the success of the company, 9.84% for selected investors and 11.57% for bumiputra investors who are approved by the International Trade and Industry Ministry.

The application for the public issue will close on May 4. – Bernama

April 26, 2016

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