Wednesday, April 6, 2011

Focus Lumber to raise RM7.32m from listing exercise

KUALA LUMPUR: Focus Lumber Bhd plans to raise RM7.32 million from the issuance of 12.2 million new shares under its floatation exercise.

It said on Wednesday, April 6 under the listing exercise, it would issue the new shares of 50 sen each at an offer price of 60 sen apiece.

Of the 12.2 million new shares, Focus Lumber would issue six million shares to the public while 900,000 new shares would be offered to eligible employees and parties who contributed to the success of the company.

The remaining 5.3 million new shares to be placed out to approved Bumiputera investors.

'The public issue will raise RM7.32 million, of which an estimated RM4.52 million will be used for working capital purposes while the balance of RM2.8 million will be used for estimated listing expenses,' it said.

Focus Lumber said under the listing exercise, the shareholders would offer for sale up to 5.16 million shares at an offer price of 60 sen per share to be offered to approved Bumiputera investors and identified investors.

Focus Lumber has an estimated 24% market share of US imports of plywood, veneered panels and similar laminated wood from Malaysia in 2009.

It plans to continue to broaden its customer base in the existing markets and penetrate into new lucrative markets.

Focus Lumber's managing director Lin Fong Ming said the company plans to invest in new and higher TECHNOLOGY [] machinery for its manufacturing process to enhance the quality of its products.

Its core product, plywood contributes to the bulk of its revenue.'' For the financial year ended Dec 31, 2010, the group's exports contributed about RM105.34 million or 87.51% to group revenue.'' The exports were mainly to the US and Asian markets.

Its consolidated revenue was RM113.84 million in FY07, RM114.37 million in FY08, RM102.30 million in FY09 and RM120.38 million in FY10.

It registered a consolidated profit after tax of RM10.22 million for the FY10.


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