ID :
66069
Tue, 06/16/2009 - 18:37
Auther :
Shortlink :
https://oananews.org//node/66069
The shortlink copeid
CHINA`S SHOE MANUFACTURER TO LIST ON BURSA`S MAIN BOARD
By Lim Chong
KUALA LUMPUR, June 16 (Bernama) -- China-based Multi Sports Holdings Ltd, a
manufacturer of sport shoe soles scheduled for listing on Bursa Malaysia (stock
Exchange)'s Main Board next month, plans to use part of the RM57.6 million
proceeds to set up a new plant.
The new plant will be located at a site close to its existing factory in
Jinjiang City, Fujian Province.
About RM30 million from the proceeds is expected to be utilised for the
building construction and purchase of machinery.
Multi Sports' executive chairman and chief executive officer Lin Huo Zhi, in
providing the details, said the main aim behind the listing was to raise funds
for the group to increase its current production capacity of 22 million pairs of
shoe soles per year.
Though operating round-the-clock in three shifts seven days a week except
for a two-week break during the Chinese New Year holidays, the company has not
been able to keep up with rising demand from the domestic market, Lin said
during a media visit to Jinjiang.
He said with the new plant, the production capacity could be increased to 55
million pairs of shoe soles per year, adding that with its current output, the
group already has about one percent share of China's shoe soles market.
Construction of the new plant is scheduled to start in the fourth quarter of
this year with production to begin in the third quarter of 2010, said Lin who
started the business in 1999.
Multi Sports is the second China-based company to announce its listing on
Bursa Malaysia through initial public offering (IPO), following Xingquan
International Sports, a manufacturer of sports shoes.
This followed changes introduced by Bursa Malaysia and the Securities
Commission which made it easier for foreign companies to list their shares here.
From the IPO comprising 108.6 million ordinary shares, 18 million is
allocated for the public, 39.6 million for private placement and the remaining
51 million, which belongs to existing shareholders, will be made available to
select investors.
After the IPO, a 15 percent stake in Multi Sports will be held by GuoLine
Group Management Co Ltd, which is indirectly owned by Hong Leong Company
(Malaysia) Bhd.
The group's listing exercise is being handled by AmInvestment Bank Bhd,
which is the sole underwriter and placement agent.
Multi Sports' profit has grown from RM24.65 million in 2006 to RM46.83
million last year and it proposed to pay out at least 20 percent of its profit
as dividends each year.
In Jinjiang, known as "China's Shoe Capital", most of the businesses are
connected to the shoe manufacturing industry, ranging from providing shoe
materials, producing shoe soles to the final assembly.
The city is also considered as the world's biggest producer of sport shoes,
being responsible for 20 to 24 percent of the world's production. (US$1=RM3.52)
-- BERNAMA
KUALA LUMPUR, June 16 (Bernama) -- China-based Multi Sports Holdings Ltd, a
manufacturer of sport shoe soles scheduled for listing on Bursa Malaysia (stock
Exchange)'s Main Board next month, plans to use part of the RM57.6 million
proceeds to set up a new plant.
The new plant will be located at a site close to its existing factory in
Jinjiang City, Fujian Province.
About RM30 million from the proceeds is expected to be utilised for the
building construction and purchase of machinery.
Multi Sports' executive chairman and chief executive officer Lin Huo Zhi, in
providing the details, said the main aim behind the listing was to raise funds
for the group to increase its current production capacity of 22 million pairs of
shoe soles per year.
Though operating round-the-clock in three shifts seven days a week except
for a two-week break during the Chinese New Year holidays, the company has not
been able to keep up with rising demand from the domestic market, Lin said
during a media visit to Jinjiang.
He said with the new plant, the production capacity could be increased to 55
million pairs of shoe soles per year, adding that with its current output, the
group already has about one percent share of China's shoe soles market.
Construction of the new plant is scheduled to start in the fourth quarter of
this year with production to begin in the third quarter of 2010, said Lin who
started the business in 1999.
Multi Sports is the second China-based company to announce its listing on
Bursa Malaysia through initial public offering (IPO), following Xingquan
International Sports, a manufacturer of sports shoes.
This followed changes introduced by Bursa Malaysia and the Securities
Commission which made it easier for foreign companies to list their shares here.
From the IPO comprising 108.6 million ordinary shares, 18 million is
allocated for the public, 39.6 million for private placement and the remaining
51 million, which belongs to existing shareholders, will be made available to
select investors.
After the IPO, a 15 percent stake in Multi Sports will be held by GuoLine
Group Management Co Ltd, which is indirectly owned by Hong Leong Company
(Malaysia) Bhd.
The group's listing exercise is being handled by AmInvestment Bank Bhd,
which is the sole underwriter and placement agent.
Multi Sports' profit has grown from RM24.65 million in 2006 to RM46.83
million last year and it proposed to pay out at least 20 percent of its profit
as dividends each year.
In Jinjiang, known as "China's Shoe Capital", most of the businesses are
connected to the shoe manufacturing industry, ranging from providing shoe
materials, producing shoe soles to the final assembly.
The city is also considered as the world's biggest producer of sport shoes,
being responsible for 20 to 24 percent of the world's production. (US$1=RM3.52)
-- BERNAMA
