KUALA LUMPUR, August 28 – Logistics services provider, KGW Group Berhad, celebrated its debut on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) with an impressive opening at RM0.23 per share, representing a 9.5% premium over the initial public offering (“IPO”) price of RM0.21 per share. KGW Group Berhad, renowned for its award-winning and asset-light logistics services, specializes in managing and coordinating the movement of goods within the supply chain.
The Group operates through three subsidiaries, KGW Logistics (M) Sdn Bhd, Mattroy Logistics (Malaysia) Sdn Bhd, and KGW Medica Sdn Bhd, each contributing to the company’s success in the logistics industry. During the IPO, KGW raised RM16.73 million, with the primary focus being the expansion of its customer base upon relocation to the Target Property in Glenmarie, Shah Alam. Part of the proceeds will be utilized to repay bank borrowings related to the purchase of the Target Property, a freehold three-storey office building with an annexed two-storey warehouse.
The Group also allocated funds for the renovation of the Target Property and listing expenses, demonstrating their commitment to growth and development. Yang Mulia Tengku Faizwa Binti Tengku Razif, the Independent Non-Executive Chairwoman of KGW, expressed her gratitude to the dedicated KGW team and the IPO DDWG team for their hard work and diligence in achieving this milestone. She also extended appreciation to the Group’s valued customers, business partners, and suppliers for their unwavering support throughout the years.
Dato’ Roger Wong, Managing Director of KGW, emphasized that the listing marked a significant achievement and a testament to the Group’s position as a leading provider of logistics services in Malaysia. He highlighted the company’s dedication to adding value to its stakeholders and reiterated their commitment to further success and expansion. The independent market research report in KGW’s prospectus revealed that the Group generated revenue of RM228.0 million from its involvement in the Malaysian logistics industry, accounting for 0.37% of the total market size (GDP) of the logistics industry in Malaysia, which was RM62.20 billion in 2022.
According to the report, the Malaysian logistics industry is projected to reach RM66.25 billion in 2023 and is expected to grow to RM87.57 billion in 2027, showcasing a compound annual growth rate (CAGR) of 7.1% for the forecast period. The warehouse and storage market in Malaysia is particularly promising, with a forecasted growth to RM3.59 billion in 2027, expanding at a CAGR of 8.2%. TA Securities Holdings Berhad played a crucial role as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd served as the Financial Adviser for the successful listing.
With a strong foothold in the logistics industry and promising growth projections, KGW Group Berhad’s debut on the ACE Market marks a momentous achievement for the company and presents exciting opportunities for its stakeholders and investors.
