Tuesday, October 11, 2011

Federal Paints to offer 70m new shares under IPO

KUALA LUMPUR: Federal Paints Holdings Bhd is offering 70 million new shares under its proposed listing on the ACE Market of Bursa Malaysia.

According to the draft prospectus posted on the Securities Commission's website, it said of the 70 million new shares, 50 million units would be placed out,'' 15 million shares made available to the company's eligible directors, employee and business associates and the remaining five million to the Malaysian public.

The offer price would be determined later. Upon completion of the corporate exercise, Federal Paints' paid-up share capital would increase from 242.63 million shares to 312.63 million shares.

The draft prospectus said Federal Paints would use 58.04% of total proceeds for working capital while for capital expenditure it would set aside 8.93%, for marketing and selling expenditure (13.39%), R&D expenditure (4.46%) and listing expenses 15.18%.

In the company's consolidated financial report for the year ended March 31, 2011, revenue had increased 22.9% to RM35.1 million from RM28.57 million a year ago. Net profit jumped 203.4% to RM6.06 million from RM1.99 million a year ago.

Meanwhile, gross earnings per share rose 206.42% to 3.34 sen from 1.09 sen a year ago based on the number of shares issued at 242.63 million before the listing.

Incorporated in April 7, 2011, Federal Paints Holdings Bhd is an investment holding company involved in the manufacturing and distribution of paints. Its subsidiary also provides subcontracting services in the CONSTRUCTION [] industry.

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