Leon Fuat makes fine debut on Main Market 2013-06-26 |
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PETALING JAYA: Main Market-listed Leon Fuat Bhd closed up 1.5 sen to 61.5 sen on its first day of trading yesterday, after hitting an intra-day high 67.5 sen.
The company was one of the top 10 most active counters with 50.14 million shares changing hands.
Leon Fuat, is primarily involved in the trading and processing of steel products specialising in rolled long and flat products. Its business focuses on carbon steel, of which the majority are mild steel and complemented by stainless and alloy steel.
The company also has in-house facilities to undertake cutting, levelling, shearing, profiling, bending and finishing of products as well as production of expanded metal.
The company targets to raise RM35.58mil from the sale of 59.31 million new shares at 60 sen each from its initial public offering (IPO).
According to reports, the company has earmarked more than 70% or RM25mil of funds raised for expansion.
Of the RM25mil, Leon Fuat intends to spend RM13mil for the purchase of the industrial land and a building, RM6mil for the construction of a new processing plant with warehousing facilities and another RM6mil for the purchase of new machines.
The rest of the IPO proceeds is for working capital and listing expenses.
From 2009 to 2012, its profit after tax has grown to RM24.1mil from RM17mil. Its revenue, over the same period, has increased to RM437mil from RM355mil
The company expects its net gearing to pare down to 0.67 times from 0.92 for the financial year ended Dec 31, 2012 after the repayment of part of its borrowings.
Source : The Star June 6, 2013
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