Thursday, 1 July 2010

SCC plans entry into Vietnam, Cambodia

via Khmer NZ News Media

By Azlan Abu Bakar
Published: 2010/07/01

Animal health product manufacturer SCC Holdings Bhd, en route for a listing on the ACE Market of Bursa Malaysia on August 3, plans to expand its business to Vietnam and Cambodia by 2011.

Its managing director Francis Cher Sew Seng said the company is in talks with several parties in the two countries to market its products in efforts to boost its presence in the international market.

At present, SCC's products are marketed locally.

"We are aggressively pushing towards the expansion and may enter Vietnam and Cambodia through strategic collaborations with parties there," he told reporters after launching the company's listing prospectus in Petaling Jaya, Selangor yesterday.

Also present was SCC executive chairman Ben Cher Hwee Seng.



Cher said SCC also plans to set up a manufacturing plant in either Vietnam or Cambodia to produce animal health products and market its food service equipment.

It also plans to penetrate the Indonesian market in the near future.

"The Malaysian animal feed additives market faces a bright outlook, with an expected compounded annual gross return of 5.9 per cent over the next five years to RM270.8 million in 2014," he said.

He added that it will be influenced by the growing local livestock production and changing preference of livestock farmers towards the usage of non-antibiotic feed additives.

"In light of this, we intend to expand our animal health products by introducing green solutions and also expand into the aquaculture market," Cher said.

The local food service equipment is also expected to grow by 8.3 per cent in five years to RM434.5 million.

This is backed by the growth of full- and quick-service restaurants and expansion of hypermarkets.

On its initial public offering (IPO), Cher said SCC expects to raise RM8.67 million from the exercise that will be used for capital expenditure, programme development, working capital and listing expenses.

The company is offering 11.117 million new shares worth 78 sen apiece.

Of the new shares issued, two million shares are for public subscription, 4.3 million for eligible employees, business associates and people who have contributed to the success of the group, while 4.81 million will be allocated to identified investors.

"The IPO represents 26 per cent of the group's enlarged share capital of 42.75 million shares," Cher said.

At the IPO price, the market capitalisation of SCC is valued at about RM33.35 million.

Alliance Investment Bank Bhd is the adviser, sponsor, underwriter and placement agent for the listing exercise.

SCC, formerly known as Syarikat Chang Cheng (M) Sdn Bhd, was set up by Ben Cher in 1974 and started its business by marketing veterinary products from overseas.

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