PRG Holdings seeks to list its manufacturing business on HKEX
KUCHING: PRG Holdings Bhd ( PRG), a Bursa Malaysia Main Market listed company involved in manufacturing, property development and construction businesses, has announced that it is considering to list its manufacturing business on the Growth Enterprise Market (GEM) of The Stock Exchange of Hong Kong Ltd ( HKEX).
PRG’s board has agreed to appoint Shenwan Hongyuan Capital ( HK) Ltd and other professional advisers for the proposed listing in Hong Kong, it said in a statement on Thusday.
It is envisaged that the group’s manufacturing division will continue to remain as a subsidiary of PRG upon the completion of the proposed listing.
In a filing with Bursa Malaysia, PRG said that the proposed listing on HKEX, a globally recognised stock exchange, would allow itself and its manufacturing division to have separate fund raising platforms in the debt and equity capital markets. This move will increase financing flexibility for both groups.
The proposed listing wi l l also facilitate a more efficient group structure by way of promoting a better segregation of business responsibilities and operations of PRG’s existing manufacturing, property and construction divisions.
A better segregation of business responsibilities will enable the management of the Group and its manufacturing divisions to efficiently allocate resources and focus on their respective division, thereby enhancing their decision-making process and responsiveness to market changes.
Started operations in 1983 in Malaysia as a partnership producing furniture webbing, PRG has since diversified into niche products for the textile and apparel, furniture, automotive, food packaging and medical industries.
Today, PRG is an industry l e a d e r, i nt e r nat iona l ly recognised for a comprehensive range of products that are available in more than 30 countries.
The manufacturing division manufactures a wide range of products that are used in various industry sectors such as: furniture webbing, recliner, seat belt webbing, industrial webbing, covered elastic yarn, rubber strips and sheets, narrow elastic fabrics, chicken loop, meat, rootball netting, esmarch, tourniquets.
PRG has since diversified its core business to include property development and construction divisions after completion of a few corporate exercises.
The Company’s maiden project, Picasso Residence, has an estimated gross development value of RM600 million.