Monday, 9 April 2012

Guan Chong targets secondary listing in Singapore

KUALA LUMPUR (APRIL 9); GUAN CHONG BHD [] is seeking secondary listing on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX).

In a a statement Monday, Guan Chong managing director and chief executive officer Brandon Tay Hoe Lian said the company was aiming for the dual-listing on SGX-ST to facilitate its access to the capital market in Singapore, and giving it the flexibility to tap into additional sources of equity funding for its expansion.

“Aside from improving our market liquidity, the proposed secondary listing will enable the Group to expand and diversify GCB’s shareholder base and improve our market visibility, specifically to the retail and institutional investors in the region.

“As we seek to export more cocoa products through Singapore, this exercise will raise our profile even more in the international market,” said Tay.

Tay said the proposed corporate exercise would entail two parts: firstly, a Public Offering of up to 62 million ordinary shares of 25 sen par, or 19.4% of total existing share capital of 319.7 million shares, comprising 31 million new shares and 31 million vendor shares to be offered by key substantial shareholders; secondly, a 1-for-2 Bonus Issue of up to 205.3 million new shares to the enlarged base of shareholders, subsequent to the Public Offering.

The issue and offer price to the investors in Singapore will be determined at a later date by Guan Chong, he said.

He said the proceeds raised from the planned secondary listing would be used for the expansion of the Group’s existing operations, product development activities, and general working capital requirements, as well as to defray expenses related to the proposal.

The proposed dual-listing exercise was expected to be completed by second half of 2012, said Tay.

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