Seng Fong Holdings Berhad, a rubber processor producing and trading Standard Malaysia Rubber and premium grade block rubber. Block rubbers produced are sold directly to end-user customers and international rubber traders, majority of which are tyre manufacturers. Seng Fong is enroute to a listing on the Main Market of Bursa Malaysia Securities Berhad and is pleased to announce the launch of the Company’s prospectus for the initial public offering (IPO). Seng Fong’s IPO involves the issuance of 160.87 million ordinary shares or 31.0% of the Company’s enlarged number of issued shares comprising a public issue of 90.81 million shares and an offer for sale of 70.06 million shares. The issued shares will be made available for application in the following manner:
Retail offering of 42.20 million shares representing 8.1% of enlarged number of issued shares will be made available in the following manner:
– 25.95 million shares representing 5.0% of enlarged number of issued shares will be made available for application by the Malaysian public (via balloting), of which 50% will be set aside for bumiputera investors including individuals, companies, societies, co-operatives and institutions – 16.25 million shares representing 3.1% of enlarged number of issued shares reserved for application by eligible persons
Institutional offering of 118.67 million shares representing 22.9% of enlarged number of issued shares will be made available in the following manner:
– 64.87 million shares by way of private placement to bumiputera investors approved by the Ministry of International Trade and Industry – 53.80 million shares by way of private placement to other institutional and selected investors
Managing Director of Seng Fong, Mr. Er Hock Lai said, “Our immediate objectives from the listing are to optimise production by increasing our total annual capacity through the hiring of additional workers for a second working shift and implementing the ESG initiatives to make our business to be more sustainable.
“We intend to use part of the proceeds raised the IPO to fund our working capital requirements to expand annual production capacity to 166,000 metric tonnes by 2023 from the current capacity of 142,000 metric tonnes. To further our ESG initiatives, we are also using proceeds raised from the IPO to repay bank borrowings that we have used to install two solar systems that will help reduce overall electricity expenses.”
“We are also allocating proceeds raised from the IPO for the installation of two biomass system using wood chips and replacing diesel to reduce overall fuel costs for our factories. We estimate that the use of the solar systems will result in savings of RM2.6 million while the biomass system will help us save RM3.5 million. On top of the cost saving, the use of renewable energy to reduce electricity and fuel consumption is in line with our emphasis on having sustainable business operations and the need to conserve the environment.”
“Building on our solid fundamentals and business reputation, we intend to recommend at least 50% of our annual net profit as dividend to shareholders subject to the approval of the Board of Directors and shareholders.”
Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng said, “Today marks a milestone for Seng Fong Holdings as the company embarks on a new chapter from a journey that began in 1986 when Mr. Er Hock Lai and his brothers founded the business to process rubber for the domestic market.
We believe that Seng Fong Holdings will be able to leverage on this IPO to attain their immediate objectives while enhancing its presence in the international market for rubber processing.”
Almost all of Seng Fong’s revenue is derived from sales to international customers for FYE2019 to FYE2021. For the nine months ended 31 March 2022, Seng Fong posted RM662.43 million of revenue with gross profit of RM61.74 million and profit after tax of RM31.32 million.
Seng Fong Holdings Bhd: http://sengfongholdings.com/
Lane Supply Company (“Lane”) announced the acquisition of Air Center, Inc. (“Air Center”). Since 1984, Air Center has served as the premier distributor and service provider of Kaeser Compressed Air Systems and Stanley Assembly Tools, serving manufacturers and commercial businesses throughout eastern Michigan and northern Ohio.
The acquisition of Air Center further expands Lane’s geographic presence within the Midwest and further enhances Lane’s product and service offerings to include assembly tools – complementary to their already existing compressed air systems, coatings and finishing applications, and industrial supply lines.
Brad Zotti, president of Lane Supply Company, said, “We’re excited about this strategic acquisition and to welcome the Air Center team to the Lane family. The acquisition of Air Center is a great fit for us in every way, allowing us to expand our geographic presence, product and service offerings, and customer base. This acquisition goes beyond revenue potential; Air Center is culturally a good fit with similar values and customer philosophies as well as talented employees who know the industry.”
Air Center will continue serving existing and new customers throughout eastern Michigan and northern Ohio, operating under the same name.
About Lane Supply Company Since 1955, Lane Supply Company (www.lanesupplycompany.com) has provided a wide variety of industrial supplies and equipment to companies across the U.S. For more than six decades, specializing in the wholesale distribution of trusted industrial supplies and capital equipment, Lane has partnered with a variety of industrial manufacturing and commercial businesses to meet their industrial supply and capital equipment needs. Lane’s product lines include industrial supplies, assembly tools, compressed air systems, and coating and finishing systems. Lane serves various industrial and commercial businesses, including manufacturing, construction, countertop fabrication and installation, metal fabrication, millwork, and automotive assembly.
With headquarters in Denver, Colorado, Lane serves customers nationwide through physical locations in Wisconsin, Ohio, South Carolina, Michigan, and sales offices in Montana and California.
Media contact Tami Matthews, Marketing Director 503.803.3682 tmatthews@lanesupplycompany.com
Lane Supply Company Tami Matthews 503-803-3682 https://lanesupplycompany.com
The Competition Commission of India (CCI) approves acquisition of shareholding in Hitachi Construction Machinery Co., Ltd. by HCJI Holdings G.K., Citrus Investments, HCJ Holdings 2 G.K., Japan Industrial V – GP K.K., and other investors.
Citrus Investments LLC (“Citrus”), a wholly owned subsidiary of ITOCHU Corporation (“Itochu”), HCJ Holdings 2 G.K. (“HCJ Holdings/HCJ HD2”), Japan Industrial – GP, Manalsu, Primrose GP, Shepherds Hill Partners III Ltd., and Sonora Partners III Ltd. through HCJI Holdings G.K. (“HCJI”), proposes to acquire 26% in the Hitachi Construction Machinery Co., Ltd. (“HCM/Target”) from Hitachi Ltd., on a fully diluted basis.
HCJI is currently a wholly owned subsidiary of Japan Industrial Partners Inc. HCJI was established as a limited liability company to hold shares in the Target and undertake all business incidental to the same. Prior to the Proposed Transaction, HCJI will be jointly held on 50:50 basis by (a) Citrus; and (b) HCJ HD2, and will change its corporate form to a stock company.
The ITOCHU Group operates in a comprehensive array of business domains, from upstream areas, such as transactions involving raw material, to downstream domains, such as retail. Itochu does not have any subsidiaries/ investee companies active in India.
HCM is listed on the Tokyo Stock Exchange. Its major shareholder and controlling parent company is Hitachi (holding 51.5 % of the shares in HCM). HCM is engaged in the manufacturing of mining and construction machinery and solution business (such as development, production, distribution of parts and service solutions as part of the after-sales services for mining facilities and equipment) globally. HCM also operates in India through the following subsidiaries and affiliates: (i) Tata Hitachi Construction Machinery Company Pvt Ltd; (ii) H-E Parts International LLC; and (iii) Bradken India Private Limited.
Seng Fong Holdings Berhad, a rubber processor producing and trading Standard Malaysia Rubber (SMR) and premium grade block rubber, is pleased to announce that the Company has entered into an underwriting agreement with Hong Leong Investment Bank Berhad (HLIB) for its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad.
Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng; and Managing Director of Seng Fong, Mr. Er Hock Lai [L-R]
According to Seng Fong’s draft prospectus posted on the Securities Commission Malaysia website, the listing exercise involves the IPO of up to 160.87 million ordinary shares or up to 31.0% of the Company’s enlarged number of issued shares comprising a public issue of 90.81 million shares and an offer for sale of up to 70.06 million shares.
Under the agreement, HLIB will underwrite 42.20 million IPO shares made available for application under the retail offering. HLIB is also the Placement Agent for 118.68 million IPO shares allocated to bumiputera investors approved by the Ministry of International Trade and Industry (MITI) as well as other institutional and selected investors.
Managing Director of Seng Fong, Mr. Er Hock Lai said, “We look forward to working with HLIB on our IPO, which we see as crucial for our future growth as the funds raised through the listing exercise will be used for expansion plans. Our plans include the installation of two solar system units to generate electricity in line with the Company’s ESG initiatives to reduce carbon footprint and have more sustainable business operations which will result in savings of approximately RM2.6 million per annum to our Group’s cost of sales.”
“We will also be installing a biomass system to reduce diesel consumption used to generate fuel for our dryer system. This initiative will also help achieve savings of RM3.5 million per year and further our ESG initiatives by making the business more sustainable over the longer term. In addition, we are also planning to increase the total annual capacity of our factories to approximately 166,000 MTS by year 2023 from current total capacity of 142,000 MTS.”
Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng said, “We are pleased to have played a key role in assisting Seng Fong in this IPO exercise. The Company has a solid reputation and a history dating back to 1986. Rubber is a key material in many industries and in particular, the automobile industry where there is steady demand”.
“We have no doubt that Seng Fong will continue to excel and to build upon the foundations set down almost four decades ago. The listing is an effective platform for the Company to move into the next stage of growth”.
Almost all of Seng Fong’s revenue is derived from sales to international customers for FYE2019 to FYE2021.
Seng Fong Holdings Bhd: http://sengfongholdings.com/
Vistar Holdings Limited (the “Company” and together with its subsidiaries, the “Group”; Stock code: 8535.HK ), an established electrical and mechanical (“E&M”) engineering services provider in Hong Kong, has achieved outstanding results for the year ended 31 March 2022. Its revenue was approximately HK$405.17 million, a year-on-year increase of approximately 32.8% reaching a historic high since the Company’s listing on the GEM of The Stock Exchange of Hong Kong Limited in 2018.
Benefiting from the business growth, installation service projects contributed approximately HK$306.90 million to the Group’s annual revenue. The five substantially-completed sizeable installation projects brought in a combined revenue of approximately HK$187.15 million.
For the year ended 31 March 2022, profit attributable to equity holders of the Company was approximately HK$20.78 million (for the year ended 31 March 2021: approximately HK$28.51 million). After excluding the listing expenses incurred during the reporting period in relation to the proposed transfer of listing of the Company’s shares from GEM to the Main Board, the Group’s operations recorded a normalised profit of approximately HK$33.06 million, an improvement of about 16.0% over the previous year.
The Board has resolved to declare a final dividend of HK0.50 cents per share for the year ended 31 March 2022. Together with the interim dividend of HK0.35 cents per share already paid, total dividend for the year was HK0.85 cents per share, maintaining a stable dividend payout ratio (for the year ended 31 March 2021: HK0.85 cents per share).
Mr Poon Ken Ching Keung, Chairman and Chief Executive Officer of Vistar Holdings, said, “Although facing the ongoing pandemic, global supply shortage of resources, inflation and an unstable market environment, the Group has drawn on its leading engineering technology and extensive project management experience to provide E&M engineering services to the Three Runway System (3RS) developments at the Hong Kong International Airport surrounding supportive infrastructure facilities, Wong Chuk Hang MTR station expansions and Hong Kong Island east central business district redevelopment. During the year, we have achieved satisfactory performance. Revenue surged to a new high and normalised profit also recorded growth. Looking ahead, we believe that the policies of the Hong Kong Government will inject remarkable momentum into Hong Kong’s economic recovery. In particular, the Lantau Vision and Northern Metropolis land development mega-projects are expected to significantly increase the demand for construction and related engineering services in the city. We will continue to improve the quality and efficiency of our output through standardisation, and actively strive to secure more projects in order to expand our business to the next level”.
For the year ended 31 March 2022, the Group has commenced three sizeable projects with a combined initial contract amount of approximately HK$113.12 million. The Group has many other secured or identified business projects presenting promising yields.
The Group is confident that the proposed transfer of listing would provide greater access to capital, on top of profits reinvested over the years, to fund the entire expansion scheme that will firmly establish it as a leading E&M engineering company in the future.
In addition, the Group revised its dividend policy and undertakes to distribute dividend at a rate of no less than 30% of the annual consolidated net profit attributable to shareholders of the Group in any financial year.
About Vistar Holdings Limited Vistar Holdings Limited is one of the leading E&M engineering service provider in Hong Kong, specialising in installation, alteration and addition works and maintenance of fire service systems. Its wholly-owned subsidiary, Guardian Fire Engineers and Consultants, Limited, has been providing engineering services in Hong Kong since 1972. The Group’s customers come from both the private and public sectors. The private sector mainly includes property developers, property owners and main contractors engaged by property developers, while the public sector mainly includes government departments such as Hong Kong Housing Authority and Hong Kong Electrical and Mechanical Services Department.
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