KUALA LUMPUR: Kucingko Bhd, a company offering 2D animation production services, is gearing up for its debut on the ACE Market of Bursa Malaysia.
The company today announced that its initial public offering (IPO) will involve around 200 million shares, representing 40 per cent of its increased total issued shares.
This allocation will be split equally, with 100 million shares available for public issue and 100 million shares for sale.
Kucingko executive director See Chin Joo said gaining approval for the IPO on the ACE Market is a notable accomplishment for the company as it signifies the first animation production studio to be listed on Bursa.
"By setting the precedent, we hope to inspire other Bursa-ready companies in the creative industry to follow suit.
"This marks the beginning of an exciting new chapter for us, as we are now poised to harness the potential of the capital markets to fuel our ambitious expansion plans, both within Malaysia and internationally," he added.
According to See, Kucingko intends to use the proceeds from the IPO to increase production capacity, expand its business network in the United States, and strengthen its position in the market, all aimed at boosting shareholder value.
"Specifically, a significant portion of the proceeds will be allocated towards increasing our production capacity by setting up branch offices in Sabah and Sarawak.
"We are confident in tapping new talent pools from those two states to complement our current Kelana Jaya's office with 260 artists," he said.
See emphasised that the expansion entails more than just increasing capacity; it involves strengthening existing client relationships and broadening the customer base in the US.
"Because of this need, part of the proceeds will be strategically used to establish a sales and marketing office in the USA, enabling us to be closer to our largest market and facilitate better client management and engagement.
"Lastly, the remaining portion of the proceeds will be earmarked for our working capital requirements," he said.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for Kucingko.