IPO ... KSHB

A company involved in shrimp production will offer of 39.2 million of new shares in its initial public offering (IPO). It would have an enlarged issued and paid up share capital of 152 million shares with a par value of 10 sen. Up to 11.7 million IPO shares would be available for application by the public and its eligible directors, employees and persons who have contributed to the company.

Besides shrimp production, the company is also involved in the sale of specific pathogens such as free Nauplii and Post Larvae as well as shrimp grow-out farming.Nauplii are free-swimming larvae developed from fertilised eggs of crustaceans, while Post Larvae are used to refer to animals after metamorphosis from larval stage.

It would utilise RM4.9mil or 48% of its raised proceeds as capital expenditure. It will utilise RM4.4mil for the development of the Badong grow-out farm, while the remaining RM500,000 would be for the development of the Rompin hatchery.

Since its incorporation in 2003, the company has worked very closely with the Department of Fisheries in developing the Malaysian shrimp aquaculture industry. With the support of the government agency in the form of quality certifications, tax incentives, subsidies or grants and technical assistance, our group has expanded its production capacity of Nauplii and Post Larvae via internal expansion as well as various collaborations and joint ventures with various shrimp hatchery and grow-out players.

Its directors include chairman Datuk Mohamed Mahyuddin Mohd Dahan, managing director Lee Kat Choy, Chee Chik Eng, Lee Kim Seng, and Zuridah Osman Merican.

They collectively control 15.05% of the company after its IPO, with the substantial shareholders Lee, and Chee both holding a 7.42% stake.

The company three-year financial performance have seen a steady growth, with its financial year ended Dec 31, 2011, recording a net profit of RM2.66mil over a revenue of RM14.6mil. It recorded a net profit of RM2.3mil for 2010 against a revenue of RM9mil.

While it achieved RM1.9mil in net profit from a revenue of RM5.4mil in 2009.

Lien Hoe: Lien Hoe Corp Bhd has ceased to be a substantial shareholder of Perduren (M) Bhd. Lien Hoe had disposed of 11.32 million shares in Perduren, which represented an 8.4% stake in the company.