Naza targets listing in Q1 2008

August 27 2007

THE privately-owned Naza Group plans to raise funds from an initial public offering (IPO) in the first quarter of next year to finance expansion, its chief said.

The automotive group initially wanted to be listed on Bursa Malaysia in the third quarter of 2006.

"We are still doing the preparation, but we will announce properly maybe by early next year," chairman and chief executive officer Tan Sri S.M. Nasimuddin S.M. Amin said.

Nasimuddin said the group was still considering a few factors regarding the proposal.

"We are still looking into it. The demand is there," he said in Kuala Lumpur on Saturday.

It was earlier reported that Naza was hiring CIMB Group and ECM Libra Avenue Bhd to arrange its IPO, slated to be one of the biggest in 2006.

Naza is believed to be planning to list either of, or both, its units, namely Naza Automotive Manufacturing (its assembly plant in Kedah) and car distributor Naza Kia Sdn Bhd.

The IPO will fund the group's future expansion, namely the construction of its new RM1 billion plant in Bertam, Penang, and the development of new models.

Last weekend, Naza Bike Sdn Bhd - the franchise holder of the Ducati superbikes in Malaysia - introduced its latest line-up: the Ducati Hypermotard.

The bike, tagged at RM98,000, is a collectible item for superbike enthusiasts. It was initially launched in Europe two years ago. Locally, Naza aims to sell about 50 units in the first year.

The Ducati franchise contributes about 10 per cent to Naza's total revenue per year. The Naza Bike division sells almost 4,600 motorcycles a year.