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PETALING JAYA: Diamond Wood China Ltd is proposing a listing on Bursa Malaysia's ACE Market. The company's draft prospectus was posted on the website of the Securities Commission (SC) yesterday.
The company was incorporated in Hong Kong and founded to manufacture and commercialise Accoya wood for the East Asian markets. Accoya wood is an artificially created hardwood created from natural wood. It has been created to be easy to maintain and somewhat exposure-resistant to ultraviolet radiation. Accoya wood is widely used for general and home construction.
Major shareholders of Diamond Wood include Nicholas Alan Edwards and Stephen Smedley.
Edwards owns investment company Silversea Holdings Ltd while Smedley owns investment company Hamilton Holdings Ltd.
The company expects the listing on Bursa to enhance its business, profile and future prospects. Listing it on Bursa will also provide the group with access to the capital market and allow it to raise funds for future expansion and growth. It also provides an opportunity for Malaysian investors to participate in its equity and growth.
The company looks to raise proceeds for the group to largely fund the construction of an Accoya wood manufacturing plant in Nanjing, China with a production capacity of 128,000 cu m of Accoya wood per annum. This plant is expected to cater for the expected increase in demand for Accoya wood in East Asia.
Diamond Wood achieved a net loss of RM31.16mil with revenue of RM6.1mil as at June 30, 2011, .
ECM Libra Investment Bank Bhd is Diamond Wood's principal adviser, sponsor, managing underwriter; underwriter and placement agent for the company's initial public offering (IPO).
A total of 200 million new shares will be offered at a to-be-announced IPO price some time next year. The new shares will represent 34.32% of the company's enlarged issued and paid-up share capital upon listing. About 30 million shares will be made available for application to the Malaysian public while the remaining 170 million will be by way of private placement to selected investors.
Upon listing, the company will have an enlarged issued and paid-up share capital of about 582.67 million shares.
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