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Furniweb Proposed Listing on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited(September 28, 2017)
Offering Total of 126,000,000 Shares;
Price Set at HK$0.5 Per Offer Share
HONG KONG, Sep 28, 2017 - (ACN Newswire) - Furniweb Holdings Limited ('Furniweb' or the 'Company'), a long-established elastic textile and webbing manufacturer in Malaysia and Vietnam, announced today the details of the listing of its shares on the Growth Enterprise Market ('GEM') of The Stock Exchange of Hong Kong Limited ('HKEx').
Furniweb plans to offer a total of 126,000,000 Shares, comprising 12,600,000 Public Offer Shares and 113,400,000 Placing Shares, at an Offer Price of HK$0.5 per Offer Share. The Public Offer will open at 9 am on Friday, 29 September 2017 and close at noon on Friday, 6 October 2017. The allotment results will be announced on Friday, 13 October 2017. Dealings in the Company's shares on GEM are expected to commence on Monday, 16 October 2017 under the stock code 8480. Shares of the Company will be traded in board lots of 4,000 shares each.
Shenwan Hongyuan Capital (H.K.) Limited is the Sole Sponsor. Yuanta Securities (Hong Kong) Company Limited acts as the Sole Global Coordinator, Sole Bookrunner and Sole Lead Manager in relation to the Share Offer.
Furniweb ranked No.1 in terms of market share in FY2016 amongst manufacturers of: 1) covered elastic yarn in Malaysia and Vietnam; 2) narrow elastic fabric in Vietnam; 3) furniture webbing in Malaysia and Vietnam and 4) seat belt webbing in Malaysia. It is principally engaged in the manufacturing of: 1) elastic textile comprising covered elastic yarn and narrow elastic fabric; 2) webbing comprising furniture webbing and seat belt webbing and 3) other products including rubber tape.
During the Track Record Period, Furniweb recorded a steady growth in its business. For FY2015 and FY2016, its revenue was approximately RM$89.0 million and RM$97.9 million, respectively; its net profit excluding listing expenses was approximately RM$5.38 million and RM$9.07 million, respectively. Net profit margin excluding listing expenses was 6.1% and 9.3%, respectively.
As at 19 September 2017, Furniweb had five production facilities in total, with three production facilities in Malaysia occupying an aggregate gross floor area of 195,227.0 sq.ft., and two production facilities in Vietnam occupying an aggregate gross floor area of 346,237 sq.ft.. Taking advantage of Vietnam's potential and business prospects such as the availability of labour at competitive costs and the introduction of favourable taxation environment for foreign investments, the Company is able to establish a scaled production capacity that allows the Company to serve customers of different operation scales.
Capitalising on its know-how in weaving and knitting, Furniweb expanded its product range over the years and now offers a wide range of products comprising elastic textile, webbing products and other products including rubber tape. The Company's ability to offer a wide range of products enables itself to reduce reliance on any specific type of customer and industry, expand its customer network in different industries and countries, as well as create cross-selling opportunities.
Over the years, the Company has accumulated a significant amount of experience and knowledge in developing customised products to satisfy customers' changing product specifications. Led by the Product Modification Department, the capability to cater customers' changing specification is instrumental in establishing its broad clientele and developing close and long-term business relationship with its customers on the one hand,whilst increasing the utilisation of machinery and reducing the risk of inventory obsolescence on the other hand.
To maintain its competitive advantage, Furniweb places emphasis on the supply of products of high and consistent quality. To this end, the Company has established stringent quality control and operational measures to ensure the quality of products. In recognition of its quality management system, the Company has obtained the ISO 9001:2008, ISO14001:2015, ISO/TS16949:2009 and Oeko-Tex Standard 100.
Moreover, Furniweb has a well-rounded leadership team with in-depth industry knowledge and experience. The Company is led by its founders and experienced senior management team, including Mr. Cheah Eng Chuan, one of the Co-founders, Executive Director & Chief Executive Officer, who is responsible for the overall corporate strategies, management and business development of the Company; Mr. Lee Sim Hak, one of the Co-founders and a member of senior management, who oversees the production function, and Mr. Ong Lock Hoo, one of the Co-founders and a member of senior management, who oversees the sales and marketing function, each having more than 30 years of experience in elastic textile and webbing industry. Other Directors and senior management of the Company, namely Dato' Lim Heen Peok, Non-executive Director & Chairman, Dato' Lua Choon Hann, Executive Director and Mr. Tan Chuan Dyi, Executive Director & Chief Operating Officer, are experienced in corporate development and operational and financial management and have contributed to the business development and corporate governance of the Company during the Track Record Period. The strong management team enables the Company to continue to explore new business opportunities and strengthen its position in the market leveraging its experience and dedication.
Dato' Lim Heen Peok, Non-executive Director & Chairman of Furniweb says, 'We are pleased to witness this significant milestone in the Company's history. Through our listing on GEM of the Hong Kong Stock Exchange, we will tap into the international capital markets, which will not only broaden our capital and shareholder base, but also provide us with capital to fund our expansion plan to continue strengthening our leading position in the industry and further enhancing our competitive advantages, thereby driving the Company's long-term development.'
Mr. Cheah Eng Chuan, Executive Director & Chief Executive Officer of Furniweb added, 'We have been in the elastic textile and webbing manufacturing industry for more than 30 years and have established a solid customer base and a leading position in the industry. Looking forward, we are poised to take advantage of the favorable operating environment with our strengths in providing high and consistent quality products through quality control measures, along with our proven track record and established long-standing relationships with our major customers. With the proceeds from the Share Offer, we will further strengthen our production capacity in elastic textile and seat belt webbing, expanding the applications of narrow elastic fabric to sportswear and exporting seat belt webbing to the new market. With our competitive edges and business plans in place, we are well-positioned to benefit from the enormous market opportunities.'
For further enquiries, please contact Frement Financial Relations Limited:
Tel: (852) 2890 8262
Mob: (852) 9666 8657
Email: [email protected]
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