Focus point expects to raise RM16.07m from IPO
KUALA LUMPUR, June 30 — Focus Point Holdings Bhd, the country’s largest chain of professional eyecare centres, expects to raise about RM16.07 million from its public issue in Bursa Malaysia’s ACE Market.
Focus Point’s initial public offering (IPO) consists of a public issue of 41.2 million new ordinary shares and offer for sale of 15.8 million ordinary shares to identified investors at an offer price of 39 sen per share.
According to Focus Point’s president and chief executive officer Datuk Liaw Choon Liang, the company is expected to be listed on the ACE market July 27, 2010.
Liaw said part of the post-listing plan was to expand Focus Point in South-East Asia, namely Singapore, Vietnam and Cambodia, within the next two years.
“Our overseas expansion plans will be driven by our franchising model where we believe our brand value will provide us the advantage,” he said after the Focus Point prospectus launch today.
On the local front, Liaw said that Focus Point aimed to increase the number of outlets in Malaysia to 200 by next year.
“We plan to set up 22 additional outlets of our own with the remaining 34 outlets to be set up through our franchise programme in high pedestrian traffic areas,” he said.
Liaw said that part of the proceeds raised from the public issue would be channelled towards working capital needs.
“Besides that, we also intend to utilise RM1.5 million of the total proceeds from the public issue to repay our outstanding bank borrowings. Through this repayment, we expect to enjoy interest savings of approximately RM109,500 per annum,” he said.
He added that RM1.2 million of the proceeds would be utilised to upgrade and refurbish existing professional eyecare centres to improve the brand image, cater for future business expansion and expand the range of eyewear products.
The Focus Point group currently has 144 professional eyecare centres nationwide, which include wholly and partially owned centres as well as franchised and licensed centres. — Bernama