Malaysian bedroom furniture maker LY Corp makes Catalist debut on Jan 31

MALAYSIAN bedroom furniture manufacturer and exporter LY Corporation will begin trading on the Catalist board at the start of trading on Jan 31, it announced late on Monday night.

In a statement, the company said that it had received valid applications for all its 75.85 million placement shares at S$0.26 apiece as at noon on Jan 29, totalling S$19.7 million in gross proceeds.

Out of the S$13 million in net proceeds from the placement, S$1 million will be used for the expansion of its sales network in China, and around S$5 million will be used to upgrade its machinery and equipment, as well as acquire new technology.

The remaining will be split between construction of more facilities and general working capital.

LY Corp designs and manufactures wooden bedroom furniture that is typically rebranded by overseas dealers for sale outside Malaysia. It is controlled by Lian Yu Holdings. The business was founded in Johor in 1976.

The company will also explore investments, mergers and acquisitions, as well as joint ventures, it said in a draft prospectus lodged on Dec 26, 2017.

The company counts Heah Theare Haw - a substantial shareholder in mainboard-listed Geo Energy Resources - and Pheim Asset Management among the investors in the initial public offering.

Tan Yong Chuan, LY Corporation's executive director and chief executive officer, said that the Catalist listing will allow the company to tap capital markets to help expand the business.