The esteemed logistics service provider, KGW Group Bhd, is launching an ambitious Initial Public Offering (IPO) on Bursa Malaysia’s ACE Market come August 1, 2023. The primary objective of this enterprise is to generate an impressive RM16.73 million, a lofty goal geared towards financing the group’s wide-ranging expansion plan.
The strategic financial exercise includes the public issue of 79.66 million new shares. Offered at the intriguingly attractive price of 21 sen per share, the raised funds are earmarked to facilitate the growth and broadening of KGW’s business scope, which has already left indelible footprints on the U.S. market.
Datuk Roger Wong, the dynamic managing director of KGW Group, recently unveiled the group’s ambitious expansion strategy. While acknowledging their robust position in the U.S. market, Wong expressed a desire to grow the group’s reach further into diverse geographical markets. “Our roadmap doesn’t stop at the U.S. market,” he declared. “The Asian markets, such as China, Middle East territories, and the Americas, both North and South, are very much on our radar.”
As part of this comprehensive strategy, Wong revealed plans to bolster the sales and marketing department with an international business development team. This key component aims to facilitate the group’s growth in the global logistics arena.
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Citing KGW’s status as an asset-light logistics provider, Wong clarified that their key expertise lies in managing and coordinating the supply chain’s goods movement. “Our value proposition to our clients is not about owning physical transportation assets. Instead, we prioritize offering value-added services that streamline our customers’ entire shipment process. Our strategy is to leverage partnerships and collaborations with existing transportation operators,” Wong explained.
Upon successful completion of the IPO, KGW Group is expected to boast a staggering market capitalization of RM101 million. Public subscriptions for the IPO will be open until 5 pm on July 18, 2023.
This grand initiative is supported by several esteemed financial institutions. TA Securities is acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise, with Eco Asia serving as the financial adviser.
Drawing from the collective strength of their partners, KGW Group is poised to step into new markets, confident of making impactful strides in global logistics.
This news article is based on information gathered from the ‘thestar’ website.
