Proceeds from the IPO will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores throughout Malaysia, purchase of new commercial laundry equipment and medical devices.
KUALA LUMPUR: BCM Alliance Bhd has received Bursa Malaysia Securities Bhd’s approval for its initial public offering (IPO) to list on the ACE Market of Bursa Securities.
The company is principally involved in the distribution of equipment specialising in the commercial laundry and medical devices businesses in Malaysia.
In a statement yesterday, the company said the proposed IPO will involve the issuance of 84.25 million new shares in BCM, representing 20 per cent of the enlarged issued and paid-up share capital.
BCM is scheduled for listing by October 2016. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
The company said, of the 84.25 million new shares, 22 million will be made available to the Malaysian public via balloting and nine million new shares for eligible directors and employees.
The remaining 53.25 million new shares are earmarked for private placement to selected investors.
The existing shareholders of the company will also make an offer for sale of 42.13 million shares to selected investors by way of private placement.
Managing director Liaw Chong Lin said approval for the listing is a significant milestone in the company’s journey to become a listed entity.
“The IPO will facilitate BCM with greater financial flexibility to pursue future growth opportunities.
“Once listed, we will be placed on a much stronger footing to grow our commercial laundry equipment and medical devices businesses,” he added.
Proceeds from the IPO will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores throughout Malaysia, purchase of new commercial laundry equipment and medical devices.
It will also be used to fund day-to-day working capital expenses for the company and defray listing expenses for the IPO.
Speed Queen is an established and well-known vended commercial laundry equipment brand under Alliance Laundry Systems LLC (Alliance Laundry), an international manufacturer of commercial laundry equipment listed on the New York Stock Exchange.
The setting up of the Speed Queen chain is expected to provide BCM the opportunity to establish and expand its market presence and customer base in the commercial laundry equipment industry.
It is also expected to enhance the company’s marketing and increase awareness of the Speed Queen brand of vended commercial laundry equipment in Malaysia. — Bernama