First Chinese Company to list in Bursa Malaysia
Filed Under (Bursa News) by Webmaster on 17-06-2009
Tagged Under : Chinese company, list in Bursa, Multi Sports Holdings Ltd
Multi Sports Holdings Ltd, one of China’s biggest manufacturers of shoe soles, is set to become one of the first two foreign companies to be listed directly on Bursa Malaysia.
When its shares are floated on the Malaysian bourse possibly in late July or early August this year, Multi Sports may also become the world’s first listed shoe sole manufacturer, said senior executives of AmInvestment Bank Bhd handling the share sale exercise.
“Multi Sports’ listing prospectus is expected to be out later this month or in July,” AmInvestment regional business director Tony Lim Tong Lee told Malaysian journalists during a visit to Multi Sports’ manufacturing facility here last Sunday.
The big plant with 1,900 workers is located in the Fujian province, widely recognised as China’s shoe capital and one of the world’s largest production sites for leather and sports shoes.
Coincidently, the other foreign company seeking to raise funds in Malaysia through an initial public offering (IPO) is also from the Fujian province, although it is uncertain when its listing is going to take place exactly, said AmInvestment Bank associate director for corporate planning Denis Lim.
Multi Sports was looking at raising some RM57.6 million from its IPO, Lim added.
Multi Sports’ factory is operated by wholly-owned Jinjiang Baixing Shoe Material Co Ltd. It produced about 22 million pairs of sports shoe soles in 2008 and is expected to churn around 25 million pairs this year.
“Jinjiang City is home to the highest concentration of famous sports shoe brands in China such as Li-Ning, 361, CBA and Q Sport,” said Multi Sports executive chairman Lin Huozhi, who founded the company in 1993 by producing rubber shoe soles with the help of two assistants.
“China accounted for some 40 per cent of the world’s sports shoe production in 2007, with Jinjiang City making up half of the country’s output,” Lin added.
Executive director Huang Wei Min said Multi Sports is one of the top five shoe soles suppliers in the province and derived more than 90 per cent of its revenue from some 300 customers there last year.
The company had generated steady revenues and profits over the past years, he said. From 2006 to 2008, it recorded an annual compounded average growth rate of 33.94 per cent in revenue and 37.84 per cent in net profit.
Revenue for 2008 alone rose to 385.31 million renminbi (about RM195.78 million) from 306.63 million renmimbi in 2007. Net profit was 92.18 renminbi (RM46.84 million) from 76.16 million renminbi (RM38.7 million) in 2007. “The listing will be a good platform to help us grow further,” Huang said.
Multi Sports will offer 57.6 million shares, or 16 per cent of its enlarged share capital, to the public under its IPO. Another 51 million shares, representing 14.17 per cent stake, will be privately placed for selected investors. Tentatively, eash share should be priced at a range of RM1.05 to RM1.15.
About RM30 million of the estimated proceeds of RM57.6 million will be used to help finance the construction of a new factory, Huang said.
