KUALA LUMPUR: Unico-Desa Plantations Bhd's wholly-owned
unit, ELK-Desa Resources Bhd, en route to a listing on the Main Market of Bursa Malaysia on Dec 18, will issue 25 million shares at RM1.16 each under its initial public offering (IPO) exercise.

Unico-Desa's executive director, Lim Keng Chin, said the exercise was expected to raise gross proceeds of RM29 million, which will be mainly used for expansion and working capital.

"The listing is an indication of the company's aggressiveness to generate more capital and resources to ensure that its growth momentum continues," Lim said after the launch of the IPO prospectus here today.

Lim said ELK-Desa will be rebranded and its portfolio will be improved.

He said the company currently did not have a dividend policy.

"However, for the financial year ending March 31, 2013, the board of directors intended to recommend and distribute about 50 per cent of its profit after tax to the shareholders as dividends," he said.

ELK-Desa is primarily involved in hire-purchase financing for used motor vehicles and insurance agency business.

It currently has over 700 motor vehicle dealers located in the Klang Valley. -- BERNAMA