KRONOLOGI ASIA BERHAD IPO

Stock code stock name Krono.
RM0.29.

Opening of application27/11/2014
Closing of application04/12/2014
Balloting of applications08/12/2014
Allotment of IPO shares to successful applicants10/12/2014
Tentative listing date15/12/2014

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF KRONOLOGI ASIA BERHAD (“KRONOLOGI” OR “COMPANY”) ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING PUBLIC ISSUE OF 59,247,000 NEW ORDINARY SHARES OF RM0.10 EACH (“SHARES”) IN THE FOLLOWING MANNER:-

• 4,739,500 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

• 7,109,500 NEW SHARES AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF KRONOLOGI ASIA BERHAD GROUP; AND

• 47,398,000 NEW SHARES BY WAY OF PLACEMENT TO IDENTIFIED INVESTORS;

AT AN ISSUE PRICE OF RM0.29 PER SHARE, PAYABLE IN FULL UPON APPLICATION

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KUALA LUMPUR, Nov 27 — Kronologi Asia Bhd aims to raise RM17.18 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia, with an expected listing date of December 15. The Singapore-based company, specialising in enterprise data management (EDM), is making a public issue of 59.25 million new ordinary shares with a par value of 10 sen each, at an issue price of 29 sen per share.

Kronologi Group chief executive officer Piti Pramotedham said 4.74 million shares are available for subscription by the Malaysian public, 7.11 million shares for directors, employees and individuals who had contributed to the group’s success, plus 47.40 million shares to be offered via public placement to identified investors.

“The proceeds from the IPO are earmarked for business expansion, research and development (R&D) expenditure, working capital and listing expenditure,” Pramotedham told reporters after launching the company’s prospectus today.

“As part of the group’s strategy, RM6.0 million of the proceeds will be used for expansion in existing and developing markets, RM3.5 million for R&D expenditure, RM4.48 million for working expenditure and RM3.2 million for listing expenses.”

Pramotedham said Kronologi plans to strengthen its markets in Singapore, Malaysia, the Philippines, Thailand and India, and sees potential in Vietnam, Myanmar and Sri Lanka.

“We are poised to tap the growing EDM market in Southeast Asia where the compound annual growth rate is forecast at 7.3 per cent and is expected to reach RM3.0 billion in 2016,” he said.

“The group has carved a profitable niche in providing EDM solutions and services by providing back-up, storage, recovery and restoration of data for business assurance and operational continuity.”

The group recorded profit after tax of RM5.56 million for the financial year ended December 31, 2013, with revenue of RM42.17 million, and for the first half of this year, posted a RM3.41 million profit on revenue of RM28.10 million.

Bank Islam Malaysia Bhd has been appointed as the group’s principal adviser, sponsor, sole underwriter and placement agent for the listing.

Bank Islam managing director Datuk Seri Zukri Samat, who was at the launch, said Kronologi is the fourth IPO advised by the bank and the first listing on the ACE Market.

“By choosing Malaysia to launch the IPO, it has provided Malaysian investors with an opportunity to invest and participate in a company geared towards sustained profits,” Zukri said.

 — Bernama