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China’s stationery giant to file IPO on Bursa Malaysia this month

KUALA LUMPUR: One of China’s top four stationery manufacturers China Stationery Ltd (CSL), which is planning a listing on Bursa Malaysia on Feb 24, expects to raise RM85.5million via an initial public offering (IPO) exercise.

The Fujian-based integrated plastic stationery manufacturer will be the 10th China-based company traded on Bursa Malaysia and it is optimistic about its performance prospects on the local bourse, according to a recent report by The Star.

“Malaysia has proper regulations and a developed capital market and we believe that our prospects are good,” its executive chairman Chan Fung @ Kwan Wing Yin was quoted. He said the company had an established portfolio of brands that would help it grow in Malaysia.

The IPO will involve the issuing of 90 million new shares at 95 sen each, of which 60 million will be available for the public while the remaining 30 million will be allocated for private placement.

Of the total proceeds, RM29.42 million will be allocated for the purchase of machinery; RM25 million for research and development; RM10.78million for advertising, branding and promotional activities; RM10million for working capital and the remaining RM10.30 million for listing expenses.

Mr Chan said the company would launch two new patented products, namely anti-tampering plastic envelopes and second generation plastic tape printers this year. Both products are expected to start contributing to the company’s bottom line.

For 2011, CSL registered a net profit of RM105.90mil compared with RM102.20mil a year earlier. Revenue was at RM451.05mil from RM371.77mil previously.

As an integrated plastic stationery company, CSL has its own brands of plastic stationery products, proprietary products and technical know-how. Its products are basically divided into two main categories, patented and non-patented.

It designs and manufactures an assortment of more than 450 plastic filing and storage products such as expendable files, pocket files, compact-disc holder files and business-card holders. It sells its products under its own brands such as Sakura, Nachi and Foldersys.

The company has more than 20 years of experience in the stationery industry and exports to over 45 countries and to more than 400 customers including distributors, retailers and corporations in China, in other parts of Asia, in Europe and the United States. Far from being a sunset industry, Mr Chan said the global stationery market is growing and is estimated to be worth US$100 billion.

SOURCE: The Star

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