Integrated plastic stationery company China Stationery Ltd has received the green light from the Securities Commission for its proposed listing on the main market of Bursa Malaysia Securities Bhd by the second quarter of 2011.
In a statement, its founder and executive chairman Chan Fung @ Kwan Wing Yin said the approval is a significant milestone for China Stationery, coinciding with its 20th year of establishment in the industry.
"With this approval, China Stationery will be able to access the Malaysian capital market to raise funds for its business and future expansion opportunities.
"We believe a listing on Bursa Malaysia will also raise our profile as a reputable integrated plastic stationery company," he added.
China Stationery will be issuing 94 million new shares, of which 33.60 million shares will be made available to the Malaysian public via balloting while the remaining 60.40 million shares are earmarked for private placement.
The company will also make a restricted offer for sale of a minimum of 47.80 million shares and up to 54.65 million shares by way of private placement.
The listing exercise is advised by Kenanga Investment Bank Bhd.
Based in Putian, Fujian province, China Stationery Group is an integrated plastic stationery company with its own brands of plastic stationery products, proprietary products and technical know-how.
It focuses on design, manufactures and sells a broad assortment of more than 450 plastic filing and storage products such as expandable files, pocket files with sheet protectors, compact disc holder files, business card holders and albums as well as its own patented products under its own brands, namely "Sakura", "Nachi" and "Foldersys".
Incorporated and registered in Bermuda, China Stationery's main proprietary and patented product is the tape printer that is capable of printing customised adhesive tape labels containing company logo or advertisement taglines which are used to seal corrugated or packaging boxes.
Apart from selling products under its own branding, it also undertakes original equipment manufacturing for its customers.
The company's house-brand products are marketed in China and in over 45 countries to more than 400 customers including distributors, retailers and corporations located in China, Asia (including Hong Kong, India, Indonesia, Japan, Kuwait, the Philippines, South Korea and Taiwan excluding China), Europe, America and other regions.
For the year ended December 2009, China Stationery recorded a net profit of RM168.52 million on the back of RM556.30 million revenue.
It has net cash of RM336.39 million as at May 2010.
China Stationery has a dividend payout policy of not less than 20 per cent based on its net profit distributable to its shareholders with respect to the year ending 31 December 2011 onwards.
It has consistently enjoyed a high net margin of more than 30 per cent over the last three years.