Following the issuance of its new shares, Leong Guan’s post-placement share capital will increase to 101.2 million shares valued at $4.45 million. The market capitalisation will be $23.28 million.
As at Nov 28, the company’s share capital comprises 83.8 million shares valued at $800,003.
After the placement, executive director and chairman Lim Tze Chiang and executive director and managing director Lim Hock Chai will hold direct and deemed stakes of 39.2% and 36.8% in the company from 52.5% and 49.7% previously. Executive director Chua Lian Hock will have a total stake of 34% in the company post placement, from 46.3% previously.
The remaining substantial shareholders and other shareholders will see their stakes remaining unchanged.
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According to the group, it intends to allocate $300,000 of its proceeds to expand its export markets and diversify its product range. It also intends to use $700,000 to enhance its manufacturing facilities. Another $600,000 will go towards acquisitions, joint venture partnerships and strategic alliances to expand the business, while $549,000 will go towards general working capital.
Net of total listing expenses of $1.6 million, the group expects to raise $3.74 million from the issue of its new shares.
The group has proposed to distribute a minimum of 80% of its net profit to shareholders in FY2035 and 35% of its bottom line in FY2026.
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In FY2024, the group’s revenue stood at $37.5 million while profit before tax stood at $2 million. Profit for the period came up to $1.7 million.
In the 3MFY2025, revenue stood at $9.4 million. Profit before tax stood at $221,000 while profit for the period stood at $232,000.
Zico Capital is the sponsor, issue manager and placement agent of the listing.
