BHS Industries Bhd ("BHS" Or "The Company") Variation To The Utilisation Of Proceeds From The Initial Public Offer ("IPO")

BackJul 28, 2008
Date Announced
:
 28/07/2008  
Type
:
 Announcement
Subject
:
BHS Industries Bhd ("BHS" or "the Company")
Variation to the Utilisation of Proceeds from the Initial Public Offer ("IPO")

Contents
:
The Company wishes to announce on the above subject as follows :-

1.Status Of Utilisation Of Proceeds

As disclosed in the Company’s quarterly report on consolidated results for the financial period ended 31 March 2008 as announced on 16 May 2008, the status of utilisation of proceeds as at 12 May 2008 is set out in Table 1 below.

2.Variation To The Utilisation Of Proceed

The variation made to the utilisation of proceeds are set out in Table 2 below.

3.RATIONALES FOR THE VARIATION

(a)The Company’s inventory cost for paper had increased from RM6.8 million in June 2007 per Audited Accounts to RM11.5 million in June 2008 per Management Account. The additional working capital of RM1.27 million helps reduce the Group’s bank borrowings.

(b)Although the capital expenditure on the expansion plan has been reduced by RM1.27 million, the Company is still able to meet customers’ demand due to the increased production capacity and improved productivity through the purchase of one new machine in 2007 and two additional machineries in 2008.

Announcement Details :





 

Table 1

 

 

 

Proposed utilisation as set out in the Prospectus

 

(RM’000)

 

Actual utilization

 

as at

 

12 May 2008

 

(RM’000)

 

 

Balance

 

(RM’000)

 

 

 

Intended timeframe for utilisation

 

 

Expansion plan

 

 

 

 

15,000

 

5,480

 

9,520

 

Within 24 months from the date of listing

 

 

 

 

Working capital

 

 

 

 

1,275

 

1,059

 

216

 

Immediate

 

Defray estimated listing expenses *

 

 

 

 

1,700

 

1,916

 

(216)

 

Immediate

 

Total

 

17,975

 

8,455

 

9,520

 

 

 

 

Note:

 

*           The actual listing expenses are higher than budgeted, therefore, the deficit was funded out of the portion allocated for working capital.

 

Table 2

 

 

 

 

 

Proposed utilisation as set out in the Prospectus

 

(RM’000)

 

Actual utilization

 

as at

 

12 May 2008

 

(RM’000)

 

 

Unutilised  amount as at

 

12 May 2008

 

(RM’000)

 

 

 

 

Variation

 

(RM’000)

 

 

 

 

Revised utilisation for the remaining amount

 

(RM’000)

 

Expansion plan

 

 

 

 

15,000

 

5,480

 

9,520

 

(1,270)

 

8,250

 

Working capital

 

 

 

 

1,275

 

1,059

 

   -

 

1,270

 

1,270*

 

Defray estimated listing expenses

 

 

 

 

1,700

 

1,916

 

    -

 

   -

 

    -

 

Total

 

17,975

 

8,455

 

9,520

 

  -

 

9,250

 

 

 

 

 

Note:

 

 

*The amount is used to increase the level of stock the Company holds.