Listing Detail:
Listing Sought: Main Market
Issue Price: RM 1.85
Par Value: RM 0.25

Dates:
Offer Period Open: 11-10-13
Offer Period Close: 23-10-13
Tentative listing date:  6-11-13

Number of shares:
Public Issue: 20,250,000
Offer for Sale:  27,000,000
Private Placement: 20,250,000
Stock Code: KAREX

Official Announcement

INITIAL PUBLIC OFFERING OF 67,500,000 ORDINARY SHARES OF RM0.25 EACH IN KAREX BERHAD (“KAREX”) (“SHARES”) COMPRISING A PUBLIC ISSUE OF 40,500,000 NEW SHARES (“ISSUE SHARES”) AND AN OFFER FOR SALE OF 27,000,000 EXISTING SHARES (“OFFER SHARES”) AT RM1.85 PER SHARE INVOLVING:

I. THE INSTITUTIONAL OFFERING OF 47,250,000 SHARES COMPRISING 27,000,000 OFFER SHARES AND 20,250,000 ISSUE SHARES TO INSTITUTIONAL AND SELECTED INVESTORS IN MALAYSIA, SINGAPORE AND HONG KONG; AND


II. THE RETAIL OFFERING OF 20,250,000 SHARES COMPRISING:

- 13,500,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC; AND

– 6,750,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY ELIGIBLE DIRECTORS, EMPLOYEES, BUSINESS ASSOCIATES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF KAREX AND ITS SUBSIDIARIES,

SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS.

Karex aims to raise RM75 mln from November 6 IPO

KUALA LUMPUR: World’s largest condom manufacturer, Karex Bhd (Karex), en route to a listing on Bursa Malaysia on November 6, aims to raise RM75 million from sales of its 40.5 million new shares at RM1.85 each.

Chief executive officer, Goh Miah Kiat, said from the total proceeds, RM42 million will be used for capital expenditure, RM14 million for working capital, RM10 million to repay bank borrowings, RM5 million for listing expenses and RM4 million for research and development.

“The listing will enable us to leverage on the growing opportunities in the global condom industry,” he said at the launch of the initial public offering (IPO) prospectus here yesterday.

Goh said the fund raised for the group’s capital expenditure would be used to expand the manufacturing facilities.

He said the group was ready to develop its largest factory in Pontian, Johor, which was not far from the company’s existing plant.

Goh expected construction of the new factory at the 7.28-hectare site to begin by early next year and be completed by end-2014.

“Upon completion of the expansion of the factory, we expect our total annual production capacity to increase from the current three billion pieces to six billion by end-2015,” he said.

Besides Pontian, the company also has factories in in Klang, Selangor and Hat Yai, Thailand, he said.

He said the expected increase in its annual production capacity was also in tandem with the acceleration in demand of condoms worldwide.

The global condom market was expected to grow at compound annual growth rate of 7.5 per cent from 22.8 billion pieces last year to 30.4 billion pieces in 2016, he said.

Goh said Karex, which currently has 10 per cent of the global market share, expected it to increase to double digits with the increase in demand for condoms worldwide.

In a statement, Karex said the IPO involved the offer of 67.5 million shares comprising the public issue of 40.5 million new shares and an offer for sale of 27 million existing shares.

“Of these, 47.25 million IPO shares are for institutional and selected investors in Malaysia, Singapore and Hong Kong while 20.25 million shares are for Malaysian retail investors.

“The retail offering of 20.25 million shares would comprise of 13.50 million offer shares to the public and the remaining 6.75 million issue shares to eligible directors, employees and business associates,” it said.

Application for the Karex’s IPO will be closed at 5pm on Oct 23, 2013. RHB Investment Bank Bhd is the principal adviser, underwriter and joint placement agent for the IPO. ZJ Advisory Sdn Bhd and CIMB Investment Bank Bhd are the financial adviser and the joint place agent respectively.

Besides condoms, Karex also produces catheters, latex probe covers and lubricating jelly. — Bernama