LY Corp, Malaysia's leading manufacturer and exporter of wooden bedroom furniture, said it has filed a preliminary prospectus with the Singapore Stock Exchange's Catalist board for its initial public offering.
LY Corp, controlled by Lian Yu Holdings, is engaged in the design and manufacture of wooden bedroom furniture from its 15 factories and warehouses. It also makes custom wooden bedroom furniture which may be tailored to customers' specifications on an original equipment manufacturer basis.
LY Corp plans to raise funds to expand its sales network in China, upgrade machinery and equipment, as well as buy construct new facilities, the company said in an IPO prospectus filed on December 26.
"We believe that there is a high demand for our products in the PRC (People's Republic of China), due to the quality of our products and the competitive prices we offer, and that our expansion in the PRC market would be one of the key drivers of our future growth," LY Corp said.
It is building a hostel for its foreign workers, which is expected to be completed by the first quarter of 2018.
The company intends to expand and diversify its operations via investments or through potential mergers and acquisitions, joint ventures or strategic collaborations.
LY Corp reported a 16.5 percent fall in profit before tax to 56.31 million Chinese in the fiscal year 2016. This was mainly due to the decrease in the selling price of some of our models as a result of the weaker market demand from our customers, the company said.
UOB Kay Hian is the principal sponsor and placement agent for the listing.