IPO-Kelington Group Bhd

Kelington Group Bhd, which provides services in ultra-high purity (UHP) gas and chemical delivery systems, plans to focus on expanding its existing overseas market comprising China, Taiwan and Singapore.

The company expects to secure a contract worth between RMB50 million and RMB60 million from China in the coming months.

Kelington hoped to raise RM5.15 million from its initial public offering (IPO).
From the proceeds, RM2.64 will be allocated for working capital, RM0.50 million for capital expenditure, RM0.25 million for research and development (R&D), and the balance of RM1.76 million to defray the listing expenses..

With the IPO it hopes to be more confident in bidding for larger projects for better growth and garnering a higher international profile and market acceptance.

Kelington is scheduled to be listed by Nov 25, 2009, becoming the first listing on the ACE (Access, Certainty and Efficiency) Market since it replaced the Mesdaq Market on Aug 3 this year (2009).

Revenue contribution from the overseas market grew 43 per cent annually from RM9 million in 2004 to RM38 million in 2008, comprising over 60 per cent of Kelington's total revenue in 2008.

Its impressive overseas revenue growth was a result of the group's active participation in implementing our solutions in many high technology facilities in China and Taiwan.

Kelington has captured 18 per cent share of the Malaysian market and is aiming to increase its current one to two per cent market share in China.

Headquartered on Shah Alam, Kelington has established its footprint in Taiwan and China since 2002, building strong relationships with three of the world's largest gas companies, namely the Linde Group, Air Liquide and Air Products.

Its customers include global players such as Intel, TSMC, Promos, Winbond and Texas Instruments in the wafer fabrication sector, Hannstar Display and IVO in flat panel display, Suntech and Motech in solar cells, and Seagate in storage media.