Colony Group Plans ACE Market Listing

Solution provider in brand experience, Colony Group Sdn Bhd, has lodged a prospectus for its initial public offering on the ACE Market of Bursa Malaysia. The company intends to use the proceeds from the IPO to finance its expansion plans and improve the business operations of the company in future.

The proposed IPO entails an issue of 114 million shares of ordinary stock. Out of these, 28.5 million shares would be offered to the general public in Malaysia. 5.7 million shares would be reserved for the qualified directors and employees of the company. Moreover, 71.2 million shares would be placed to the Bumiputera investors approved by the Ministry of Investment, Trade and Industry. On the other hand, 8.6 million shares would be offered to selected investors through the private placement process. Furthermore, 56.9 million shares of existing ordinary stock would also be offered to the investors through a private placement process. Malacca Securities serves as the principal adviser, sponsor, underwriter, and placement agent in this IPO.

Expansion Plans After the IPO

A significant part of the IPO fund-raising is going to be invested into the creation of an integrated facility located in Kapar, Selangor.

This facility is going to be the main hub for operation and will be crucial for the next level of development for the company.

Greneco’s corporate office along with the logistics center and warehouses are going to be located at the new facility, which will have the offices of the sales and marketing departments, customer experience center, and demonstration lab.

Improving Business Efficiency

Currently, Colony Group conducts its business from four separate places in Selangor, which includes its head office located at Kayu Ara, another two offices, and a workshop located in Shah Alam. Consolidating all these business operations into one place through the Kapar facility is going to enhance efficiency, reduce complexity, and make a more market presence.

It is also planned that some of the money raised through the IPO process is going to be utilized in paying off the debt on the Kapar land, completion of renovations, working capital needs, and listing expenses. Some additional funds will be employed for increasing the inventory of goods.

 

Focus on Future Growth

The managing director and executive director of Colony Group are Tan Cheng Eng and Liong Chian Leek, respectively. They are mechanical engineers from the United Kingdom. The company plans to enhance its sales and marketing efforts within Malaysia within the next three years using strategies that include customer involvement, building better relations with the consultants, referrals, and improved digital marketing techniques. This will help build brand awareness, attract customers, and aid the company’s expansion post its listing on the ACE market.