China’s Xidelang Sets to Raise RM58 from Bursa Listing

Established in 1993 and setting itself as the third chinese company to be listed on the Main Market of Bursa Malaysia, sportswear manufacturer based in Jinjiang, China- Xidelang Holdings Limited has launched an initial public offering (IPO) that will raise RM58 million with the issues of 100,000,000 new ordinary shares of US0.10 each at an issue price of RM0.58 per XiDeLang share.

Despite the global uncertainty this year, Xidelang’s profits accelerated remarkably 89% to RM38.2 million in the first six months to June 2009, while its revenue rose 70% to RM197 million.

According to Xidelang’s co-founder and managing director Mr. Ding Peng Peng, “Xidelang is set to ride on the growth of China’s booming economy and the with the help of growing popularity for homegrown sportswear brand”. Also present at the prospectus launch were, Xidelang’s executive Chairman Ding Li Hong and AmInvestment Bank Berhad Managing Director, Mr. Kok Tuck Cheong.

It is believed that part of the money raised from the listing, will be used to finance the construction of new plant, which enables Xidelang Holdings Limited to double its annual capacity of 4.8 million pairs of shoes when the first phase completed next year.

Xidelang is offering 100million shares in IPO, of which 90% million will be privately placed out and the remaining 10million for public application. The sale of the share will be closed on October 30th 2009 and the company will be listed on Bursa Malaysia on November 11th 2009.