Business

Published: Wednesday November 4, 2009 MYT 2:41:00 PM
Updated: Wednesday November 4, 2009 MYT 2:49:53 PM

Yoong Onn Corp aims to be world player in home linen industry


KUALA LUMPUR: Yoong Onn Corp Bhd which is to be listed soon, will allocate RM6 million to strengthen the company and make it a leading player in the home linen industry in Malaysia and overseas.

Managing director and group chief executive officer, Roland Chew Hon Foong said the allocation is from part of the capital raised from the initial public offering (IPO), for listing by year end.

"We expect to raise RM22.2 million from the listing exercise. The balance is to be utilised among others, by the group, for repayments of bank borrowings and defray listing expenses," he said.

Speaking to reporters after an underwriting agreement signing ceremony, Wednesday with Public Investment Bank Bhd, Chew said Yoong Onn will launch more advertising and promotion campaigns for domestic and overseas expansion.

"We will build an extensive distribution network and are now, in the midst of finalising the work on expansion," he said.

Currently, Yoong Onn has an overseas presence in Fiji, Mozambique, Turkey, Brunei, Singapore, Taiwan, Vietnam, Indonesia and New Caledonia, with a 21 per cent contribution to its revenue.

It also holds a market share of about 22 per cent locally with 13 retail outlets in the Klang Valley, Penang and Johor Baharu.

Chew said the company is optimistic about continuing to record growth in view of a positive trend in the economy, especially the encouraging signs in the property market.

Yoong Onn recorded a compounded annual growth rate of 24.6 per cent in net profit on the back of 24.6 per cent in revenue for the financial year ended June 30, 2009.

Public Investment Bank Bhd said the IPO of Yoong Onn involves the public issue of 25,170,740 new ordinary shares of 50 sen each and an offer for sale of 25,229,260 ordinary shares of 50 cents each for both, at an IPO price of 88 cents per share.

"The IPO provides an opportunity to the general public to invest in an established and reputable players like Yoong Onn to the Main Market," Public Investment's head of corporate finance Phang Siew Loong said.

"In fact we believe that Yoong Onn's listing will be a unique play in Bursa Malaysia, given that it will be the first home linen player to be listed here," Phang added.

Yoong Onn is an integrated manufacturer and distributor of its own brand home linen which focuses on the production of bed and bath linen, bedding accessories and curtains.

To date, it has 14 established brands catering to premium and mid-range consumer markets and includes Jean Perry, Novelle, Louis Casa, Genova, Diana and Cotonsoft. - Bernama


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story