Listing Detail:
Listing Sought: ACE Market
Issue Price: RM0.43

Dates:
Offer Period Open: 19 Jun 2019
Offer Period Close: 26 Jun 2019
Tentative listing date: 8 Jul 2019

Number of shares:
Public Issue: 76,000,000
Offer for Sale: 57,000,000
 

Stock Code: KHJB

Official Announcement

INITIAL PUBLIC OFFERING ("IPO") OF 133,000,000 ORDINARY SHARES IN KIM HIN JOO (MALAYSIA) BERHAD ("KHJ") ("SHARE(S)") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED ORDINARY SHARE CAPITAL OF KHJ ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") COMPRISING:-

(A) A PUBLIC ISSUE OF 76,000,000 NEW ORDINARY SHARES IN KHJ ("ISSUE SHARE(S)") IN THE FOLLOWING MANNER:-

(I) 19,000,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

(II) 10,000,000 ISSUE SHARES RESERVED FOR APPLICATION BY OUR ELIGIBLE DIRECTORS AND EMPLOYEES AS WELL AS PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP; AND

(III) 47,000,000 ISSUE SHARES BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INSTITUTIONAL AND/OR SELECTED INVESTORS; AND

(B) AN OFFER FOR SALE OF 57,000,000 EXISTING ORDINARY SHARES IN KHJ ("OFFER SHARE(S)") IN THE FOLLOWING MANNER:-

(I) 38,000,000 OFFER SHARES BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, MALAYSIA; AND

(II) 19,000,000 OFFER SHARES BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INSTITUTIONAL AND/OR SELECTED INVESTORS;

AT AN ISSUE PRICE/OFFER PRICE OF RM0.43 PER ISSUE SHARE/OFFER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

Kim Hin Joo (Malaysia) Berhad retails baby, children, and maternity products. Its products include baby, children, and maternity clothing; home and travel products, such as feeding and home safety, bathing and changing, nursery and bedroom, strollers and accessories, car seats, and baby carriers; and babies, children, and outdoor toys, as well as books.

The company retails its products through Mothercare outlets, ELC, SIS, Mothercare online store, online sales channels, and Baby Expos. It also distributes baby, children, and maternity products to local retailers, as well as international retailers and distributors.

The company operates 16 Mothercare outlets and 11 ELC SIS in Malaysia. Kim Hin Joo (Malaysia) Berhad was incorporated in 1978 and is headquartered in Seri Kembangan, Malaysia.

Address & Contact:

Kim Hin Joo (Malaysia) Berhad (37655-U)
Wisma Pang Cheng Yean, Lot 5205C, Jalan Perindustrian Balakong Jaya
43300 Seri Kembangan, Selangor Darul Ehsan.

Tel: 03-89406638
Email: careline@mothercare.com.my
Website: http://www.khj-my.com/

Share Capital

• Market Cap: RM163.4 mil
• Shares Issue: 133 mil shares (IPO 76 mil, Company Insider/Miti/Private Placement 57 mil)

Geo

• Malaysia: 98.25%
• Overseas: 1.75%

Past Financial Proformance (Revenue, EPS)

• 2018: RM97.687 mil (eps: 0.0366)
• 2017: RM93.310 mil (eps: 0.0381)
• 2016: RM84.857 mil (eps: 0.0402)
• 2015: RM77.031 mil (eps: 0.0270)

Net Profit Margin

• 2018: 11.38%
• 2017: 12.39%
• 2016: 14.42%
• 2015: 10.65%

Use of fund

• Business Expansion & Capital Expenditure: 61.20%
• Working Capital: 27.17%
• Listing Expenses: 11.63%

News: Kim Hin Joo expects to raise RM32.68m from IPO, plans new outlet openings

KUALA LUMPUR: Kim Hin Joo (Malaysia) Bhd, en route to a July 8 listing on the ACE Market of Bursa Malaysia, expects to raise proceeds of RM32.68mil from the issue of 76 million new shares at an issue price of 43 sen a share.

According to its prospectus, the 76 million new shares comprise 20% of the group's enlarged issued share capital, of which 19 million shares will be made available to the Malaysian public, 10 million to eligible persons and 47 million to selected investors.

A further 57 million existing shares will be offered for private placement.

Upon listing, the group would have a market capitalisation of RM163.4mil based on an enlarged share capital of 380 million shares.

The distributor of baby, children and maternity products plans to utilise the proceeds of its IPO to open more Mothercare clothing outlets and increase its existing toy offerings

About a third of the proceeds or RM10mil will go towards the expansion of its retail network while RM5mil will be used for expanding its toys range.

"Two premises located in the Klang Valley are expected to be opened in the 3rd quarter of 2019 and a further 2 to 3 new outlets outside the Klang Valley between 2020 and 2021, depending on the commercial feasibility of such outlet openings," it said.

The group added that it is finalising a development agreement with a UK-based toy retailer in 2H2019 for the exclusive rights to open and operate The Entertainer toy outlets in Malaysia as a franchisee.

According to the prospectus, the group currently lacks a comprehensive toy range, resulting in a small contribution to its product mix and only 6.63% of overall revenue in FY18.

Another RM3mil of the proceeds will go towards upgrading its back-end IT infrastructure and e-commerce platform and RM2mil will be used to expand and relocate its existing outlets.

The remaining RM8.88mil will be used for working capital.

in the financial year ended Dec 31, 2018, the group posted profit after tax of RM11.11mil on the back of revenue of RM97.69mil.

The group's retail segment contributed 82.15% or RM80.25mil to total revenue while its distribution segment contributed 17.85% or RM17.43mil.

The lion's share of the business revenue stems from the Klang Valley with 76.87% contribution. About 21.4% of the revenue is derived from other locations in Malaysia and 1.75% from overseas markets.

At present, the group operates 17 Mothercare brand and 11 Early Learning Centre brand store-in-store outlets in Malaysia.

Its Home & Travel brand distribution business currently has 635 distribution points in Malaysia and overseas.