KUALA LUMPUR: Only World Group Holdings Bhd (OWG) intends to revitalise the KomtarTower in Penang using 56% of the proceeds from its IPO.
In its prospectus exposure, the group said the revitalisation project involves the proposed refurbishment and enhancement of five specified levels within the Komtar Tower to create high-end commercial space for retail, food and beverage, and recreational purposes.
The project commenced on Aug 27 and is expected to be completed within 30 months of the leasing date.
The group also plans to allocate about 28% on its expansion plans, which include the expansion of its water park, Wet World Water Park in Shah Alam, food and services outlets, and growing its franchise programme.
The rest of the proceeds will be used for working capital and listing expenses.
“Our group intends to utilise our IPO proceeds as general working capital to support our business operations.
“This would further enhance our cash flow position and enable us to conduct our operations smoothly without being dependent on external borrowings,” it said.
The group plans to issue up to 56.4 million new ordinary shares (30.49%) of the group’s enlarged issued and paid-up capital, priced at 50 sen each. Of the projected new shares, 5% or 9.2 million shares are allocated for the public.
Furthermore, four million shares or 2.2% will be allocated for its directors, 18.5 million shares or 10% for bumiputera investors and 24.7 million shares or 13.3% for selected investors.
The OWG group is primarily a provider of leisure and hospitality services incorporating the operation of food services outlets, as well as amusement and recreation outlets comprising water amusement parks and family attractions.
This article first appeared in The Edge Financial Daily, on October 30, 2013.