DK list shares19 June 2004
Local company DK-Leather Corp expect to raise Rm17.3 million (Rm3.8 = US$1) from listing their shares on the Malaysia Securities Exchange in June. DK-Leather are mainly involved in the manufacture, assembly, installation and retailing of a range of automotive leather upholstery and ancillary products. Established ten years ago, the group had their major breakthrough in the industry in 1997 when they supplied the original leather upholstery to a locally produced car, the Proton Perdana. Other customers include Perodua, Volvo, Hyundai, Ford, Honda and Kia. For the year ended March 30, 2003, DK-Leather posted a 56% increase in pretax profits to Rm28 million, up from Rm18 million in 2002, on sales up 35% to Rm116 million in 2003 over the Rm86 million in 2002. According to chairman and ceo Danny Koek Tiang Kung, the proceeds of the float will be used to fund the company's expansion, including establishing distribution outlets in Europe, Thailand, India and the Philippines by the end of this year. In an interview, he said: 'Our goal is to increase exports to over 70% within the next three years. 'Currently exports account for just under half of DK-Leather's total turnover. Our products are exported to the US, Australia, the UK, Ireland, Japan, Denmark and Singapore under the DK-Schweizer brandname.' Under the initial public offering, the group are offering 45.2 million ordinary shares of 20 sen at an issue price of Rm1.10 each. A total of 15 million shares will be available for the public, the balance reserved for private placement. The group are also offering 10 million shares to eligible directors, employees and business associates.