OWG sees Putrajaya as its new grwoth area

KUALA LUMPUR: Only World Group Holdings Bhd (OWG), which is en route to a listing on the Main Market of Bursa Malaysia on Dec 18, expects to secure operational licences for two food service outlets in Putrajaya by early 2015, said its managing director and group CEO Datuk Richard Koh (pix).
"There are a lot of potential areas we are looking at. In fact, the next area of growth we are looking at is Putrajaya ... it will be more of an integrated fun, food and living concept, similar to what we've done in Genting Highlands," he told reporters at the launch of its prospectus yesterday.
Koh said the group is currently at the design stage and is working on getting the licence for the project but declined to reveal further details of the project.
He said funding for the project is not included in the RM50 million proceeds that it plans to raise from the initial public offering (IPO).
According to its prospectus, the group plans to set up 10 new food service outlets with an estimated average capacity of 120 seats per outlet. Of the 10, five will be in Genting Highlands, three in Penang and two in Putrajaya.
The group is in the midst of securing these premises and expects to firm up the details during the first half of 2015.
OWG plans to set up locations grouping together a number of outlets, mostly operating under its brands, in Johor by end of 2015 and the Klang Valley by end of 2016. These locations will have a combination of food and beverage (F&B) outlets and one or more family attractions, and will be funded by internally generated funds.
The group currently operates 27 food service outlets, three water amusement park and two family attractions.
The group's IPO entails a public issue of 56.41 million new ordinary shares at an issue price of 88 sen per share. It aims to raise proceeds of RM50 million from the IPO, of which RM30 million will be used for the refurbishment of five levels within Komtar Tower in Penang.
Koh said the five levels, named The Top, will be turned into high-end commercial space for retail, F&B and recreational purposes.
Work on The Top started in September 2013 and is 50% completed to date. Koh said it is on track for completion in the third quarter of 2015 and will be the group's main profit contributor in 2016.
Meanwhile, RM13 million from the IPO proceeds will be used to defray costs to be incurred for the setting up of its new food service outlets and the expansion of the Wet World Water Park Shah Alam, RM2 million for working capital and the balance for listing expenses.
Applications for the public issue opened yesterday and will close on Dec 5, 2014 at 5pm. Balloting of the applications for the IPO shares is scheduled on Dec 9, 2014.