KUALA LUMPUR, April 1 — Sin-Kung Logistics Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its upcoming initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.

In a statement today, the integrated logistics service provider said the IPO involves a public issue of 200 million new shares and an offer for sale of 103.5 million existing shares, representing 16.7 per cent and 8.6 per cent of the enlarged share capital of Sin-Kung Logistics, respectively.

It said that of the public issue, 60 million new shares would be made available to the Malaysian public via balloting, and 45 million new shares would be allocated to its eligible directors, employees and persons who have contributed to the success of the group under pink form allocations.

"The remaining 95 million new shares are reserved for private placement to bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti),” it said.

As for the offer-for-sale portion, 55 million shares will be reserved for private placement to bumiputera investors approved by Miti, while the remaining 48.5 million shares will be allocated by way of private placement to selected investors.

"Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 105 million new shares made available to the Malaysian public and pink form allocations,” it said.

Sin-Kung Logistics managing director Alan Ong said the IPO exercise would enable the company to gain access to the Malaysian capital markets to raise funds in order to facilitate the continued growth and development of its trucking services, container haulage services, as well as warehousing and distribution services.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise. — Bernama