KUALA LUMPUR: Seng Fong Holdings Bhd has obtained the approval of the Securities Commission (SC) to list on the Main Market of Bursa Malaysia Securities Bhd.

       Seng Fong is principally involved in the processing of Standard Malaysia Rubber (SMR) and premium grade block rubber as well as trading in block rubber, where its customers are mainly tyre manufacturers or international rubber traders.

       The company also operates a Malaysian Rubber Board-approved laboratory for the testing, grading and certification of the processed block rubbers.

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       Seng Fong’s listing exercise involves the initial public offering (IPO) of up to 160.87 million ordinary shares comprising a public issue of 90.81 million shares and an offer for sale of up to 70.06 million shares, according to its draft prospectus.

       The IPO shares are divided into an institutional offering of up to 118.68 million shares representing 22.9% of the enlarged issued shares and a retail offering of up to 42.20 million shares representing 8.1% of the enlarged issued shares.

       Managing director Er Hock Lai said the listing would enhance its reputation and assist the company in expanding its customer base globally while allowing it to gain access to the capital markets to raise funds for future growth opportunities.

       “The listing also enables us to raise the funds we need for the installation of a biomass system that will provide a source of fuel for our processing operations while at the same time achieving cost savings by reducing overall fuel costs.

       “We are also installing two solar system units to help us lower electricity cost as well as help us achieve our sustainability goals of reducing greenhouse gas emissions,” he said in a statement.

       A portion of the proceeds from the listing will also go to working capital needs, which will include increasing production capacity and repaying bank borrowings, which include a term-loan for the installation of the solar systems.

       Hong Leong Investment Bank Berhad is the principal adviser, underwriter and placement agent.