Mar 10, 2010
Hock Heng bidding for RM50m jobs
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Low Kim Hock (left) with Public Investment Bank Bhd chief executive officer Teoh Cheng Soon at the launch of Hock Heng Stone Industries Bhd’s prospectus
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KUALA LUMPUR: Hock Heng Stone Industries Bhd, a manufacturer of dimension stones in Malaysia, is bidding for jobs worth over RM50mil, said chairman and managing director Low Kim Hock.
“The projects we are bidding for are mostly private jobs comprising high-end condominiums and offices,” he said at the launch of the company’s prospectus yesterday.
“We also have a lot of walk-in customers,” he said, adding that the group had an order book of RM30mil.
Malacca-based Hock Heng is involved in the manufacturing, selling, distributing and trading of a wide range of dimension stones, including granite, marble, sandstone and slate.
Hock Heng also bids for government projects. Previous jobs include the Prime Minister’s office and Palace of Justice in Putrajaya. Low said he was optimistic about the outlook for the local dimension stones industry.
The group is planning to raise RM8.4mil from its initial public offering (IPO), which closes on March 16. Hock Heng is expected to list on the main market on March 26.
The IPO involves an offer for sales of 14.258 million shares and a public issue of 15.342 million new 50 sen shares at an issue price of 55 sen per share. Public Investment Bank Bhd is the adviser, managing underwriter, underwriter and sole placement agent for Hock Heng’s IPO.
Of the public issue, 6 million shares are available for public subscription.
Of the expected proceeds, RM2.1mil would be used for the purchase of machinery and land clearing for a quarry in Tangkak, Johor.
Low said the group had earlier obtained approval for extraction of granite stone from the quarry and the said business was expected to improve Hock Heng’s profitability.
Accounts and finance director Low Yong Seng said the quarry business would contribute to earnings by the financial year ending Dec 31, 2011.
“We expect a 13% contribution to group revenue,” he said.
Hock Heng sources its granites locally and abroad. It imports from countries like Iran, China, India and Italy.
Low said the dimension stone industry in Malaysia was estimated to be worth RM220.4mil in 2008, with Hock Heng commanding a 22.5% share of the market.
He said the group was looking to expand its business overseas, and was eyeing countries such as Singapore, Indonesia, China and Vietnam.
“We’re looking to expand by 2011. We’re also looking for agents locally and overseas to become our sales representatives in foreign countries.”
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