ADDING SERVICES: Photo shows Leon Fuat’s current facilities. Ooi says the group has intentions to purchase two new slitting machines by 2016, which will be added on to the group’s existing range of value-added services.
KUCHING: Since its listing earlier this year, Malaysia-based steel trading and processing company, Leon Fuat Bhd (Leon Fuat) hopes to ramp up its operations with progress underway with its initial public offering (IPO) proceeds.
Leon Fuat made its debut on Bursa Malaysia’s Main Market on June 5 at a premium of 3.5 sen over its initial 60 sen offer price. its last traded price was 51 sen on Friday last week.
“Our share price has been fluctuating up and down and admittedly, we are a little disappointed but share price is affected by market sentiments,” outlined Leon Fuat group managing director Ooi Bin Keong to The Borneo Post.
“We believe that our foundation is solid and our business expansion plans and growth prospects going forward are looking positive so we’re not too apprehensive.”
Speaking on the progress of the projects funded by the proceeds raised from the IPO, Ooi noted that the purchase of a new industrial land and building was made back in July 2012.
“Meanwhile, construction of the new processing plant with warehousing facilities on this piece of land will begin in 2015 and is expected to be completed by 2016,” he explained.
“At present, we have appointed architects, civil engineers and the likes to begin planning the construction. If we can finalise the details sooner we will begin construction earlier than 2015.”
Additionally, Leon Fuat has intentions to purchase two new slitting machines by 2016, which will be added on to the group’s existing range of value-added services.
“We decided to add slitting services to our range because there is a ready demand for it from existing customers,” he said.
“Having this new service will also allow us to attract new customers. Hence, we believe that it will increase the sales and contribute to the group’s overall earnings.
“As of now, we are still identifying suitable slitting machine manufacturers that can cater to our requirements.”
This, he noted, was on the back of current mixed feelings towards the performance of the steel sector in Malaysia.
“However, we remain positive as steel is the fundamental material for many industrial sectors such as infrastructure and construction, oil & gas and so on.”