China Stationery Eyes US$28 Mln From IPO

KUALA LUMPUR, Jan 31 (Bernama) -- China Stationery Ltd, en route to a main market listing on Feb 24, expects to raise RM85.5 million (US$28.018 million) for its initial public offering (IPO). Executive chairman Chan Fung alias Kwan Wing Yin said the integrated plastic stationery China-based company plans to establish a factory in Malaysia within a year. In conjunction with its listing exercise, China Stationery is making a public issue of 90 million new shares at an issue price of 95 sen each comprising 60 million shares made available to the Malaysian public via balloting and 30 million shares made available for private placement to selected investors. China Stationery will also be offering for sale 133 million shares to selected investors via private placement. The proceeds from the IPO will be utilised for the purchase of machinery, for research and development, advertising, branding and promotional activities as well as working capital and listing expenses. "Moving forward, China Stationery will launch two new patented products namely anti-tampering plastic envelope and second-generation plastic tape printer this year," he said during the prospectus launching ceremony on Tuesday. The target customers for the anti-tampering plastic envelopes, Chan said, are global express mail service players as well as post offices in China and other countries. For the financial period ended 2011, China Stationery registered RM105.90 million (US$34.704 million) net profit compared with RM102.2 million (US$33.491 million) a year ago. Its manufacturing plant is located in Fujian province, China. The company's house-brand products are marketed in China and globally in over 45 countries to more than 400 customers including distributors, retailers and corporations located in China, Asia, Europe, America and other regions. -- BERNAMA Malaysia