The group plans to offer a public issue of 79.66 million new shares at 21 sen per share to fund its expansion plan.

Proceeds from the IPO will be used mainly to repay bank borrowings of RM10 million, for renovation of the group’s three-storey office building and adjacent two-storey warehouse (RM2 million), working capital (RM730,000) and listing expenses (RM4 million).

KGW group managing director Roger Wong said the group plans to grow its business in other geographical markets apart from its strong footing in the US market.

“We will continue to grow the US market because it is a great market. Moving forward, we also want to grow in depth in Asian markets such as in China and the Middle East, as well as in North and South America,” he told the media after launching KGW’s prospectus today.

According to Wong, the group is also planning to expand its sales and marketing department by having an international business development team as one of its key strategies in its expansion.

“We are an asset-light logistics provider that specialises in managing and coordinating the movement of goods within the supply chain.

“Instead of owning physical transportation assets such as ships, trains and planes, we focus on providing more valuable services to our customers to facilitate their whole shipment process by leveraging partnerships and collaborations with existing transportation operators,” he added.

The group is expected to have an enlarged market capitalisation of RM101 million upon listing.

The public issue portion of the IPO will be made available starting today. It closes on July 18, 5pm.

TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise while Eco Asia is the financial adviser.