KUCHING: K-Star Sports Ltd (K-Star), a China-based sports footwear company aims to broaden its global foothold, following its forthcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd by the middle of this year.
BROADER PRESENCE: Ding (right) says it is within K-Star’s plans to offer its high-quality branded sportswear to more countries after its upcoming Malaysian IPO by the middle of this year. Seen next to Ding is K-Star’s executive director and chief financial officer Lim Yeow Eng.
In its release yesterday, the group confirmed the underwriting of 3,401,000 of its new ordinary shares on offer pursuant to the IPO, as well as the appointment of its advisor, managing underwriter and placement agent Public Investment Bank Bhd, a member of the Public Bank Group.
Underwriting groups JF Apex Securities Bhd and Mercury Securities Sdn Bhd were also included in the confirmation ceremony.
According to K-Star’s executive chairman and chief executive officer Ding Jianping, the listing of the company would mark its position as one of the privileged few that had successfully established a brand presence outside of China.
“We have our proprietary brands and designs that attract many followers in the mid to mid-low mass market. Currently, we have an established brand in China, Russia and Eastern European countries. It is also in our plans to offer our high-quality branded sportswear to more countries after the IPO,” he said.
K-Star generates over 700 designs annually and manufactures some 7.9 million pairs of sports footwear, out of which 4.3 million pairs are distributed to their 769 retail outlets across the People’s Republic of China.
On the IPO, Ding announced that the company would use 27 per cent of the funds raised from it towards the expansion of its production capacity, 15 per cent for expansion of sales and marketing network, 14 per cent for enhancement of product design and development capabilities, while the balance would be allocated for general working capital, branding and advertising as well as listing expenses.
“K-Star plans to install two additional production lines, giving them a total of six production lines and an increase of in-house production capacity from four million pairs to approximately six million pairs per annum.
“The company is also looking into further establishing distribution networks around Eastern Europe and in China while expediting its expansion of sports apparel. The launch of sports apparel will definitely be a boost to the company’s profits, and ultimately contribute significantly to the investors’ turnover,” explained Ding.