KUALA LUMPUR : Quarry specialist supplier SCH Group Bhd is expected to raise RM20.86 million from its initial public offering (IPO) on the ACE Market with the issue of 90.69 million new shares at an offer price of 23 sen each. Of the gross proceeds, RM10 million will be used for capital expenditure, including building the group's new operations facility, RM5 million to purchase new quarry machinery and equipment, RM3.86 million for working capital and RM2 million for listing expenses. The new RM14 million facility is a four-storey building comprising a corporate office, warehouse, factory, a showroom-cum-service centre for quarry machinery and quarry equipment and reconditioning work space. The company plans to expand its local market share by increasing its range of quarry machinery and equipment as well as reconditioned quarry machinery. It also sees a large demand for reconditioned quarry machinery in both local and other Southeast Asian markets. SCH group managing director and deputy chairman Lau Mong Ling said the company plans to cater to these markets by supplying reconditioned quarry machinery at more cost-effective prices. The group also plans to open offices in Indonesia , Thailand , Vietnam , Myanmar , the Philippines and Cambodia by leveraging on its existing customers, who have foreign quarry operations and business operations in the region. "Our business expansion in these countries will help complement our target markets and expand our reach in Southeast Asiam as we expect a pick-up in economic development and more infrastructure projects," Lau said. Of the 90.69 million new shares, 13 million would be made available to the public via balloting and another 13 million to eligible directors, employees and business associates. SCH is scheduled to be listed on February 13 .
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