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Soon-to-be-listed CAP to strengthen position in China

KUALA LUMPUR (Jan 14, 2013): China Automobile Parts Holdings Ltd (CAP), enroute to a listing on the Main Market of Bursa Malaysia on Jan 30, will focus on solidifying its presence in China and expanding its distribution to inner Mongolia, Ningxia, Gangsu and Xinjiang provinces.

CAP is expected to undertake preliminary studies to identify business opportunities in the four provinces in the first half of this year and embark on promoting and distributing its products in the second half of 2013.

Based in Fujian Province, CAP is principally involved in the manufacturing of automobile chassis components, namely wheel-hub bolts, wheel axles, steel pins, u-bolts and torque-rod bushings for heavy automobiles.

About two-third of its products are currently distributed in 17 provinces in China and one-third is exported to Southeast Asia, the Middle East and South Africa via eight trading houses.

“Presently, our plans to set up manufacturing facilities are still focused in the Chinese market. We’ve not considered other markets yet,” its managing director Terry Li told a press conference after the launch of its prospectus here on Friday.

Earlier, its chairman Datuk Seri Dr Jalaluddin Abdul Rahim said any plans for the auto chassis components manufacturer to build a factory in Malaysia may be part of a longer term plan.

Li said CAP is confident of entering the Malaysian market despite lackluster share performance of eight other listed China-based companies here.

“We can’t comment on other companies but our products have been distributed in Malaysia for seven to eight years and they’ve been well accepted. Besides, investors are familiar with this counter and in the future, we believe we should achieve a good financial performance.”

He added that CAP will establish a representative office in Malaysia within six months.

CAP, which expects to raise RM61.2 million from its initial public offering (IPO), is allocating RM25 million to expand its production centre; RM6.1 million to increase its production capacity; RM6 million for marketing and branding; RM16.9 million for working capital and the remaining RM7.2 million for its listing expenses.

It is issuing 90 million new shares at an offer price of 68 sen per share of while 30 million will be made available to the public via balloting while the remaining 60 million shares are earmarked for private placement to selected investors. CAP’s substantial shareholder China Automobiles Parts (BVI) Co Ltd is also making an offer of sale of up 60 million shares to selected investors via private placement.

Upon listing, CAP will have a market capitalisation of RM408 million.

Apart from selling products under its own brands, the group also undertakes manufacturing of original equipment manufacturer (OEM)-specification products. Its proprietary-branded products under ‘PL’, ‘Lidun’, ‘Suoli’ are sold in the domestic market, whereas export-designated sales are for aftermarket OEM-specification products.

SOURCE: The Sun Daily(吉隆坡11日讯)即將於1月30日上市大马股市主板的中国汽车零件控股(China Automobile Parts),计划筹集6千120万令吉用於营运资金及扩张生产规模等,並放眼扩张其中国的业务至甘肃、內蒙古、新疆、寧夏等省,维持业內领导地位。














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