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KGW Group Berhad Debuts On Ace Market

(L-R): Ms. Kelly Neng 甯观沁女士, Director of Eco Asia Capital Advisory Sdn Bhd Mr. Kelvin Khoo 邱業勝先生, Managing Director of Eco Asia Capital Advisory Sdn Bhd Datuk Hamzah Bin Mohd Tahir, Executive Director of Dealing of TA Securities Holdings Berhad Mr. Lean Sze Yau 練志堯先生, Independent Non-Executive Director of KGW Group Berhad Dato’ Roger Wong 拿督黄庆鸿, Managing Director of KGW Group Berhad Tengku Faizwa Binti Tengku Razif, Independent Non-Executive Chairwoman of KGW Group Berhad Ms. Lim Joo Seng 林友欣女士, Independent Non-Executive Director of KGW Group Berhad Ms. Lee Li Choon 李丽春女士, Independent Non-Executive Director of KGW Group Berhad Ms. Cheok Hui Yen 石慧緣女士, Executive Director/ Chief Operating Officer of KGW Group Berhad Mr. Ku Mun Fung 古文方先生, Head of Corporate Finance of TA Securities Holdings Berhad

KUALA LUMPUR, 1 August 2023 – KGW Group Berhad (“KGW” or the “Group”), a logistics services provider offering ocean freight services, air freight services and freight forwarding services as well as warehousing and distribution of healthcare-related products and devices, debuted today on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”), opening at RM0.23 per share which represents a premium of 9.5% over the initial public offering (“IPO”) price of RM0.21 per share.

KGW is listed under the stock name of “KGW” with stock code of “0282”.

KGW is an award-winning and asset-light logistics services provider specialising in managing and coordinating the movement of goods within the supply chain. KGW is supported by three subsidiaries, namely KGW Logistics (M) Sdn Bhd (“KGW Logistics”), Mattroy Logistics (Malaysia) Sdn Bhd (“Mattroy Logistics”), and KGW Medica Sdn Bhd (“KGW Medica”). KGW Logistics focuses on shipping cargo to and from the United States, which is KGW’s largest market whereas Mattroy Logistics handles shipments to and from other regions of the world. Meanwhile, KGW Medica specialises in warehousing and distribution of healthcare-related products and devices.

The Group raised a total of RM16.73 million through the IPO, from which RM10.00 million of the proceeds is allocated to repay bank borrowings in relation to the purchase of a freehold three-storey office building with an annexed two-storey warehouse located at Glenmarie, Shah Alam (“Target Property”). RM2.00 million is allocated for the renovation of the Target Property. RM0.73 million of the proceeds will be used for working capital purposes while the remaining RM4.00 million is allocated for listing expenses.

Independent Non-Executive Chairwoman of KGW, Yang Mulia Tengku Faizwa Binti Tengku Razif said, “I would like to thank the entire KGW team and the IPO DDWG team for their hard work and diligence in bringing the Group to today’s listing. On behalf of KGW, we would also like to extend our appreciation to customers, business partners and suppliers who have supported us over the years.”

Managing Director of KGW, Dato’ Roger Wong said, “This is a significant milestone for the Group and evidence of how far we have come as a business to be a leading provider of logistics services in Malaysia. Through this listing, we have not only cemented our success, but we will continue to build on what we have to bring more value to our stakeholders.”

According to the independent market research report in the KGW’s prospectus, the Group generated revenue of RM228.0 million from its involvement in the Malaysian logistics industry, equivalent to 0.37% share of the total market size (GDP) of the logistics industry in Malaysia of RM62.20 billion in 2022.

The report noted that the Malaysian logistics industry is projected to reach RM66.25 billion in 2023 and grow to RM87.57 billion in 2027, expanding at a CAGR of 7.1% for the forecast period. In particular, the warehouse and storage market in Malaysia is forecast to reach RM2.58 billion in 2023 and expand at a CAGR of 8.2% to RM3.59 billion in 2027.

TA Securities Holdings Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO while Eco Asia Capital Advisory Sdn Bhd is the Financial Adviser for the IPO.

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