"DBS Vickers Online's IPO Centre. IPO shares of Texchem-Pack will be available from 12.00noon to 1.00p.m. on Thursday, 26 Oct 2006"
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Published September 29, 2006
Texchem-Pack revives its listing attempt
M'sian firm could launch offer here by end of next month
TWO years after it backed off from a listing attempt on the Singapore Exchange (SGX), a Malaysia-based plastic packaging firm has revived its initial public offer (IPO) here.
Buoyed by warming market sentiments, Texchem-Pack yesterday lodged its preliminary prospectus with the Monetary Authority of Singapore.
While the date and size of the share offer is not yet known, a company spokesman said that the firm hoped to launch the offer by the end of next month.
A subsidiary of Penang-based Texchem Resources Berhad (TRB), which is listed on the Malaysian bourse, Texchem-Pack was incorporated as a private limited company in Singapore three years ago.
Its core operations are in Malaysia, with production facilities in Thailand, Vietnam and China, but not here.
Its chief business is in designing, making and selling a range of plastic packaging products for the semiconductor, consumer electronics and telecommunications industries.
It counts among its customers major players such as Seagate, Sony and Solectron.
Looking ahead, the company plans to do more research and development into packaging products for the medical industry, as it anticipates a growing demand for medical services.
It is also exploring opportunities in the car industry in Thailand.
Figures from the preliminary prospectus show that after taking a hit in 2004, the company's earnings had bounced back by 2005.
Its revenue for FY2005 was RM201.7 million (S$87.4 million), up from RM136.9 million the previous year and 2003's RM131.5 million.
Net profit reported for FY2005 was RM11.5 million, four times that of FY2004's RM2.8 million, and twice that of FY2003's RM5.5 million.
Texchem-Pack is led by Penang-based executive chairman Fumihiko Konishi, who also heads the parent company TRB.
It has appointed DBS Bank as manager, underwriter and placement agent, while KPMG Singapore and KPMG Malaysia are its reporting accountants and auditors.
Principal bankers are HSBC Malaysia, CIMB Bank, Malayan Banking, RHB Bank and Southern Bank.
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Published August 21, 2004
Texchem wins nod to list packaging arm
M'sian group also eyes SGX listings for two other units
(KUALA LUMPUR) Texchem Resources Bhd (TRB), which on Wednesday received a conditional approval for Texchem-Pack Holdings (S) Pte Ltd (Texpack) to be listed on the Singapore Exchange (SGX), is looking to list two more of its divisions on the same bourse.
Texpack, a wholly-owned subsidiary of Penang-based TRB, will serve as the holding company for the proposed SGX listing of TRB's packaging division.
'We hope to get Texpack listed by the end of September, after which we want to promote the listings of our family care and food divisions,' TRB chairman and CEO Fumihiko Konishi told the Malaysian Business Times in Penang.
Once Texpack is listed, Mr Konishi said, TRB plans to apply to list the company's family care division (which is spearheaded by Fumakilla Malaysia Bhd) on the Singapore bourse by next April.
'This proposed listing is to enable us to raise capital for further expansion of our mosquito coil business in Indonesia,' he said.
TRB began commercial production of the coils at its Jakarta plant in August 2002. Having captured a market share of 10 per cent and manufactured one billion coils, Mr Konishi said, TRB is now eyeing a 30 per cent market share in three to four years.
'We will need three more factories in Indonesia - in Medan, Surabaya and Kalimantan,' he said.
The Texchem group comprises companies involved in four divisions - industrial, packaging, family care and food.
On why TRB was planning to float only three of its four business divisions, Mr Konishi said: 'Our plan to enter China through Texchem Materials Sdn Bhd (under the industrial division) does not require us to raise capital but simply a sufficient workforce.'
He said the proposed listing of the three TRB subsidiaries on the SGX was to ensure that each of them was able to raise funds for their overseas expansion activities without burdening TRB shareholders.
'The approval to list our first division on the Singapore bourse is a new chapter for TRB after 31 years of its establishment,' said Mr Konishi. He said, however, TRB will retain its headquarters in Penang.
He said the approval to list Texpack came at an 'opportune' moment, given the healthy growth charted by the packaging industry which was in tandem with the manufacturing sector's expansion.
Texpack's principal activities include the manufacture and sale of plastic packaging materials for electrical and electronic components as well as precision parts for electronics, electrical, semiconductor and data storage industries. It has seven manufacturing facilities in Malaysia, China, Thailand and Vietnam.
TRB was listed on the second board of the Bursa Saham Malaysia Securities Bhd in 1993 and subsequently transferred to the main board in 2001.
