ACE-MARKET BOUND KUCINGKO AIMS TO RAISE RM30 MLN FROM IPO

KUALA LUMPUR, June 28 (Bernama) -- Kucingko Bhd, an established two-dimensional (2D) animation production service, aims to raise RM30 million from its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia Securities on July 26, 2024.

Executive director See Chin Joo said of the total proceeds, RM17.8 million will be utilised for capacity expansion wherein RM11.9 million will be allocated to set up new production branch offices in Sabah and Sarawak.

“We are trying to diversify and tap into Sabah and Sarawak talents. We have already started collaborating with the governments of these states to actually train and then employ them. 

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“The rationale behind this expansion plan is also because, besides Selangor, we realise there is a lot of talents outside this state which can be trained and subsequently contribute back to the project that we are doing,” he told a press conference in conjunction with the prospectus launch today.

Upon listing, Kucingko will be the first animation production studio to be listed on the local bourse.

The company is currently working with the Sabah Creative Economy and Innovation Centre, Sarawak Digital Economy Corporation Bhd, Universiti Malaysia Sarawak, as well as Universiti Malaysia Sabah, to tap into the local and graduates talent.

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See said the expansion was also aimed at providing job opportunities to the company's former staff who were affected by COVID-19 and had returned to to their hometowns in Borneo.

Meanwhile, Kucingko also intends to use RM4.4 million of the proceeds to set up a sales office in the United States (US) specifically in Los Angeles, California, to generate business opportunities with prospective customers in the area, as well as continue to serve the requirements of the group's existing customers in North America.

“About 74 per cent of our business comes from the US and North America. So, there are a lot of reasons why we need to strengthen our presence there so that we can reach out to more customers and workplaces,” he noted.

See reckoned that with this expansion the company would be able to have face-to-face interactions and provide localised support to its potential customers while adding that North America, Asia Pacific and Europe are the company's main markets.

On the remaining proceeds, he said RM4.3 million will be allocated for working capital and RM3.6 million for listing expenses.

At the IPO price of 30 sen, Kucingko would have a market capitalisation of RM150 million ahead of its debut.

Meanwhile, Kucingko’s IPO will involve the issuance of 100 million new ordinary shares and an offer for sale of 100 million shares, which collectively represents 40 per cent of its enlarged number of issued shares.

“Some 25 million new shares will be made available for application by the Malaysian public through a balloting process, of which 12.5 million has been made available to public investors and 12.5 million has been reserved for Bumiputera public investors.

“Ten million new shares will be reserved for application by the eligible directors, employees and persons who have contributed to the company’s success and another 65 million shares will be made available by way of private placement to selected investors,” it said.

The offer for sale of 100 million existing shares has been reserved for private placement to selected investors, it added.

The application for the IPO is open today and will be closed on July 12, 2024, at 5 pm.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

-- BERNAMA