Evergreen to be 1st MDF exporter on main board

Evergreen to be 1 st MDF exporter on main board


EVERGREEN Fibreboard Bhd, which issued its prospectus yesterday, aims to be the first leading medium density fibreboard (MDF) exporter to be listed on the main board of Bursa Malaysia Bhd.

Its executive director, Kuo Jen Chiu, said the group's main focus is on MDF, which contributes 82.2 per cent to group revenue of RM314.58 million for the 10-month period ended October 31 2004.

An integrated producer of engineered wood-based panel products focusing on MDF, Evergreen produces particleboards and knocked-down furniture.

"Our core business is MDF in various forms - plain MDF and value-added MDF. We believe we will be the first listed company with 80 percent focus on MDF," Kuo said in a statement released in Kuala Lumpur.

Kuo said the prospectus issued yesterday marked a significant milestone in the history of the company ever since his father Kuo Wen Chi founded the business about 27 years ago.

He highlighted the company's transparent dividend policy, which stipulated 20 to 50 per cent of the company's net profits after tax to be reserved for dividend distribution to shareholders, Subject to conditions as listed out in the prospectus.

For the current financial year ending December 31 2005, the company has forecast a tax-exempt dividend of 3.125 sen per ordinary share of RM0.25 each. This translates into a dividend of 12.5 per cent.

The company is also expecting a consolidated per-tax profit of RM80.67 million (RM64.96 million after-tax and minority interest) on the back of a total revenue of RM519.42 million.

Evergreen is offering 93.66 million new shares in its pubic issue compromising a public portion of 24 million new shares via balloting, six million new shares for eligible directors and employees of the group, 10.66 million new shares by way of private placement and the remaining 53 million new shares for approved Bumiputera investors.

As part of the listing exercise, there will also be an offer for sale of 113.0 million shares, comprising 41.5 million shares by way of private placement and 71.5 million shares for placement to Bumiputera investors.

The initial public offering, which tentatively closes on February 25, is pursuant to its proposed flotation of its entire issued and paid-up share capital of RM120 million compromising 480 million ordinary shares of RM0.25 each.

Balloting for the public issue is tentatively scheduled for March 2 with the shares expected to make their debut on the bourse next month.
The public issue is expected to raise RM106.77 million, of which RM32 million will be used to repay borrowings, Rm9 million for asset acquisition, RM5.2 million for listing expenses and RM60.6 million will be retained as working capital.

- New Straits Times, February 16, 2005
01-Jan-1970