KGW Group Berhad debuts on ACE market

    By
    News Hub Asia Reporter
    -

    KGW Group Berhad, a logistics services provider offering ocean freight services, air freight services and freight forwarding services as well as warehousing and distribution of healthcare-related products and devices, debuted today on the ACE Market of Bursa Malaysia Securities Berhad, opening at RM0.23 per share which represents a premium of 9.5 per cent over the initial public offering (IPO) price of RM0.21 per share.KGW is listed under the stock name of “KGW” with stock code of “0282”.

    (L-R): Ms. Kelly Neng, Director of Eco Asia Capital Advisory Sdn Bhd, Mr. Kelvin Khoo, Managing Director of Eco Asia Capital Advisory Sdn Bhd, Datuk Hamzah Bin Mohd Tahir, Executive Director of Dealing of TA Securities Holdings Berhad, Mr. Lean Sze Yau, Independent Non-Executive Director of KGW Group Berhad, Dato’ Roger Wong, Managing Director of KGW Group Berhad, Tengku Faizwa Binti Tengku Razif, Independent Non-Executive Chairwoman of KGW Group Berhad, Ms. Lim Joo Seng, Independent Non-Executive Director of KGW Group Berhad, Ms. Lee Li Choon, Independent Non-Executive Director of KGW Group Berhad, Ms. Cheok Hui Yen, Executive Director/ Chief Operating Officer of KGW Group Berhad, Mr. Ku Mun Fung, Head of Corporate Finance of TA Securities Holdings Berhad | Photo by KGW Group/NHA File Photo

    KGW is an award-winning and asset-light logistics services provider specialising in managing and coordinating the movement of goods within the supply chain. KGW is supported by three subsidiaries, namely KGW Logistics (M) Sdn Bhd (KGW Logistics), Mattroy Logistics (Malaysia) Sdn Bhd (Mattroy Logistics), and KGW Medica Sdn Bhd (KGW Medica). KGW Logistics focuses on shipping cargo to and from the United States, which is KGW’s largest market whereas Mattroy Logistics handles shipments to and from other regions of the world. Meanwhile, KGW Medica specialises in warehousing and distribution of healthcare-related products and devices.

    The Group raised a total of RM16.73 million through the IPO, from which RM10.00 million of the proceeds is allocated to repay bank borrowings in relation to the purchase of a freehold three-storey office building with an annexed two-storey warehouse located at Glenmarie, Shah Alam (Target Property). RM2.00 million is allocated for the renovation of the Target Property. RM0.73 million of the proceeds will be used for working capital purposes while the remaining RM4.00 million is allocated for listing expenses.

    Independent Non-Executive Chairwoman of KGW, Yang Mulia Tengku Faizwa Binti Tengku Razif said, “I would like to thank the entire KGW team and the IPO DDWG team for their hard work and diligence in bringing the Group to today’s listing (2 August 2023). On behalf of KGW, we would also like to extend our appreciation to customers, business partners and suppliers who have supported us over the years.”

    (L-R): Dato’ Roger Wong, Managing Director of KGW Group Berhad, Tengku Faizwa Binti Tengku Razif, Independent Non-Executive Chairwoman of KGW Group Berhad, Ms. Lim Joo Seng, Independent Non-Executive Director of KGW Group Berhad, Ms. Cheok Hui Yen, Executive Director/ Chief Operating Officer of KGW Group BerhadMs. Lee Li Choon, Independent Non-Executive Director of KGW Group Berhad, Mr. Lean Sze Yau, Independent Non-Executive Director of KGW Group Berhad | Photo by KGW Group/NHA File Photo

    Managing Director of KGW, Dato’ Roger Wong said, “This is a significant milestone for the Group and evidence of how far we have come as a business to be a leading provider of logistics services in Malaysia. Through this listing, we have not only cemented our success, but we will continue to build on what we have to bring more value to our stakeholders.”

    According to the independent market research report in the KGW’s prospectus, the Group generated revenue of RM228.0 million from its involvement in the Malaysian logistics industry, equivalent to 0.37 per cent share of the total market size (GDP) of the logistics industry in Malaysia of RM62.20 billion in 2022.

    The report noted that the Malaysian logistics industry is projected to reach RM66.25 billion in 2023 and grow to RM87.57 billion in 2027, expanding at a CAGR of 7.1 per cent for the forecast period. In particular, the warehouse and storage market in Malaysia is forecast to reach RM2.58 billion in 2023 and expand at a CAGR of 8.2 per cent to RM3.59 billion in 2027.

    Source: KGW Group