IPO ... GW Plastics Holdings Bhd

GW Plastics Holdings Bhd will list on the Main Market of Bursa Malaysia again after six years of absence when it was taken private following a management buyout.

The manufacturer of plastic film packaging products — Great Wall Plastic Industries Bhd — was listed on the local bourse in 1995 and taken private in 2004.

The listing exercise will see it offering 61.42 million shares of 50 sen each.

This involves selling 45.42 million existing shares and a public issuance of 16 million new shares. Of the 45.42 million shares, GW Plastics is placing out 23.6 million shares to bumiputera investors approved by the Ministry of International Trade and Industry while 17.82 million shares would be placed out to identified investors. Of the 16 million new shares, the company is selling 11.8 million shares to the public and the remaining shares offered to eligible directors and employees of the group and its subsidiaries.

The major shareholders who are selling off a portion of their shares are Lim Kok Boon (selling 1.62 million shares), Yeoh Soo Ann (5.67 million shares) and Keybumi Sdn Bhd (38.13 million shares).

The funds raised from the issuance of new shares would be used to expand its range of products — by value adding and product differentiation; buying new facilities to add to its capacity; and to expand into new markets like China, the United States, Russia and Africa.

GW Plastics Holdings has over 350 customers from domestic and overseas markets. Main customers which have been with them for more than 20 years include companies like Nippon Kompo Shizai Co Ltd, Gardenia Bakeries (KL) Sdn Bhd, Malayan Sugar Manufacturing Co Bhd, Malaysian Packaging Industry Bhd, Exxonmobil Chemical Asia Pacific and ABC Tissue Products Pte Ltd.

Exports sales increased to 52% in 2009 from 32% in 2004, it said.

Of its export market revenue contribution, Japan is the largest contributor of 16.6% to sales, Singapore 10.4% followed by South Korea at 6.6%.
Its other overseas markets include Australia, New Zealand, Europe, Mexico, Hong Kong, and other Southeast Asian countries.