2D Animation Company Kucingko Signs Underwriting Agreement for ACE Market IPO

(From left to right) Executive Director of Kucingko Berhad, Mr. See Chin Joo, Executive Director, Head of Group Investment Banking and Islamic Banking of Kenanga IB, Datuk Roslan Hj Tik, Executive Director of Kucingko Berhad, Mr. Ooi Kok Hong

Kucingko Bhd, a company offering 2D animation production services, has entered into an underwriting agreement with Kenanga Investment Bank Bhd for its forthcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

As outlined in the draft prospectus on Bursa Securities, Kucingko's IPO will consist of a public offering of 100 million new ordinary shares and the sale of 100 million existing ordinary shares, totaling 40 per cent of the company's enlarged ordinary share capital.

25 million issue shares, equivalent to 5 per cent of the increased number of ordinary shares, are set aside for application by the Malaysian public, with half of this allocation reserved specifically for Bumiputera investors.

10 million issue shares or 2 per cent of the enlarged number of ordinary shares, are designated for eligible directors, key senior management, employees, and associated individuals who have contributed to the success of the Kucingko group (pink form allocations).

65 million issue shares, constituting 13 per cent of the enlarged number of ordinary shares, are allocated through private placement to chosen investors.

Meanwhile, 100 million offer  shares, accounting for 20 per cent of the increased number of ordinary shares, are distributed through private placement to chosen investors.

Kucingko executive director See Chin Joo said that the IPO is in line with Kucingko's aspiration to expand within the 2D animation industry.

"The funds raised from the IPO will be instrumental in scaling our business through setting up a sales office in the United States of America, our largest market, and increasing our production capacity by setting up branch offices in Sabah and Sarawak to tap into the talent pools in these two cities," he added.

"We believe that Kucingko's position as the first 2D animation company to be listed on Bursa Malaysia will have a positive impact on the market and industry, setting a benchmark for excellence in the creative sector," says Kucingko executive director Ooi Kok Hong.

Kenanga Investment Bank, serving as principal adviser, sponsor, underwriter, and placement agent, will guarantee the 35.0 million issue shares available for application by the Malaysian public and pink form allocations.