Integrated plastic stationery manufacturer, China Stationery Limited (CSL) made its debut on the Malaysian stock market on Friday to become the seventh Chinese company listed on the bourse.
The stationer, based in Futian in Fujian province has a market capitalization of 1.13 billion ringgit and is valued at about 1.2 billion ringgit for its initial public offering, making it potentially the most valuable China-based company on the Malaysian bourse.
The company will raise 85.5 million ringgit (28.41 million U.S. dollars) from its 90 million new shares issued at an offer price of 95 sen (31 cents) per share.
The bulk of the proceed, CSL Chairman Kwan Wing Yin said, would be used for advertising and acquiring new machines as the group planned to increase its annual production capacity of its polypropelyne sheets, which are used as the basis of plastics and adhesives, from 27,600 tonnes to 44,400 tonnes.
The group plans to set up a manufacturing plant in Malaysia and list on the Singapore's stock exchange, again.
"We will study our plan to set up factories here immediately after the listing but we have to first be familiarized with the policies and other economic conditions here before we start with the plan," Kwan told reporters at the listing ceremony.
The company was approved to list on the Singaporean stock exchange in 2008 but pulled out due to poor economic conditions.
Kwan said they chose the Malaysian bourse because of stable management and that it encouraged foreign listings.
"The listing regulations in Malaysia are similar to Singapore. We chose Malaysia because we feel it has a more stable Initial Public Offerings management," Kwan said.
The stationary group also considers resuming supplies to Malaysian traders after it halted exports several years ago due to customs duty issues, Kwan said.
The company's net profit last year grew 17 percent to 464.71 million yuan from 397.63 million yuan the previous year.
Its revenue last year increased 26 percent to 1.78 billion yuan from 1.41 billion yuan in 2010.
It expects revenue growth this year to maintain at last year's level
The company manufactures more than 450 plastic filing and storage products that are marketed in China and over 45 other countries worldwide.
Asia excluding China was the largest contributor to China Stationery's revenue for 2010 at 33 percent, followed by China, the Americas and Europe.
Chan and two other individuals hold about 74.7 percent of the post listing while Malaysia's hajj pilgrims fund board, Lembaga Tabung Haji would have 2.23 percent post-IPO stake in the company.
So far, shoe manufacturer, Xingquan International Sports Holdings Limited was the largest China-based company listed on the Malaysian bourse as of last month with a market capitalization of 304.26 million ringgit.
Other Chinese companies listed on the bourse are Multi Sports Holdings Ltd, XiDeLang Holdings Ltd, K-Star Sports Ltd, China Ouhua Winery Holdings Ltd and Sozu Global Ltd, mostly shoe manufacturers.