K-Star eyes dual listing prospects

K-Star eyes dual listing prospects
Posted on November 28, 2010, Sunday

KUCHING: K-Star Sports Ltd (K-Star) announced recently the company’s proposals to implement a sponsorship of a Depository Receipts Programme (DRP) in Taiwan.

Executive chairman and chief executive officer of K-Star, Ding Jianping commented, “The dual listing will also help promote public awareness towards K-Star in Taiwan, strengthening our international brand image and providing an alternative source of funding for the company.”

“Under our proposed TDR programme, the 100 million K-Star shares forming the underlying shares for the issuance of the TDRs shall comprise of up to 75.6 million new K-Star shares to be issued pursuant to the proposed share issuance and up to 24.4 million existing K-Star shares by certain existing shareholders,” he added.

The TDRs would be offered to potential investors in Taiwan by way of placement to identified third party investors and would be offered to the investing public in Taiwan.

The principal parties that would be involved in the Proposed TDR Programme included K-Star; Bank SinoPac, a financial institution based in Taiwan; Citibank NA Hong Kong, and Citibank Bhd and SinoPac Securities Corp as the underwriter for the offering of TDRs to investors in Taiwan.

The maximum gross proceeds to be raised from the proposed share issuance was expected to amount to approximately RM77.87 million, based on the indicative issue price of RM1.03 per new share, of which RM19.5 million would be used to expand K-Star’s production capacity.

The company also stated that RM15 million would be utilised for expansion of sales and marketing network; RM9 million to continue to boost the company’s branding and advertising efforts; RM3 million to enhance product design and development capabilities.

The balance of the fund would be allocated for general working capital and expected expenses for the Proposed TDR Programme and the Proposed Share Issuance.

“We are very optimistic about our prospects.

“Our company has recently expanded its footprints in the People’s Republic of China (PRC) and Russia and has successfully set up 19 wholesale points,” Ding said.

“We are pleased to continuously report sustainable growth for K-Star and we believe that K-Star is established and resourceful enough to venture into a dual listing. K-Star is eager to share its profit to a more diversified shareholder base through our dual listing,” he concluded.

http://www.theborneopost.com/?p=77531