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Saturday, September 28, 2013

Condom producer Karex Bhd to issue 40.5m new shares under IPO


KUALA LUMPUR: Karex Bhd is issuing 40.5 million new shares and it also offering for sale 27 million existing shares under its listing exercise.

The company, which is seeking listing on the Main Market of Bursa Malaysia Securities Bhd, said on Friday the enlarged share capital upon listing would be 270.0 million shares.

Karex had on Friday signed an underwriting agreement with RHB Investment Bank Bhd where the latter is also the principal adviser and joint placement agent for the listing exercise.

Karex CEO Goh Miah Kiat signed the documents on behalf of Karex while RHB Investment Bank was represented by its managing director and CEO Mike Chan.

It has a total capacity to produce three billion pieces of condoms per year, making it the single largest condom manufacturer in the world.

It expects its prospectus to be launched in October and targets to be listed by November.

Goh said the listing would enable Karex to leverage on the growing opportunities of the global condom market.

He cited the growing demand driven mainly by the increasing global population which was projected to reach eight billion in 2025.

Karex was incorporated in 1988 in Johor, and it had a plant each in Pontian, Johor; Port Klang, Selangor; and Hat Yai, Thailand.

In addition to manufacturing condoms, the group also manufactures lubricating jelly and other medical devices which include catheters and probe covers.

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