KUALA LUMPUR, July 25 – KGW Group Berhad (“KGW”), a provider of logistics services, has announced its plan to raise RM16.73 million through an initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad. The IPO will involve the issuance of 79.66 million new shares at an IPO price of RM0.21 per share. The proceeds from the IPO will be utilized for various purposes, including the renovation of the Group’s office building and warehouse, working capital requirements, repayment of bank borrowings, and listing expenses.
KGW specializes in managing and coordinating the movement of goods within the supply chain. Instead of owning physical transportation assets, the Group focuses on providing valuable services to customers by leveraging partnerships and collaborations with existing transportation operators. This asset-light approach has allowed KGW to develop a solid network with logistics service providers worldwide. The Group plans to implement several strategies after the IPO, such as expanding its customer base for non-USA destinations.
Scaling up operations by increasing headcount, expanding warehousing services for healthcare-related products, and exploring new business opportunities in logistics, including e-commerce solutions. TA Securities Holdings Berhad is serving as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, while Eco Asia Capital Advisory Sdn. Bhd. is acting as the Financial Adviser. KGW has shown consistent revenue growth, with recorded revenues of RM43.38 million, RM63.52 million, RM195.42 million, and RM229.70 million for the financial years ending December 31, 2019, 2020, 2021, and 2022, respectively. The Group also reported increasing profits before tax during the same period.
