Hansard to raise RM20m from China for a seaweed cultivation project in Malaysia

[China, Malaysia] Hansard Group Sdn Bhd, the first Malaysian company to seek a listing on China’s Hai Xia Equity Exchange (HXEE), aims to raise RM20 million from the exercise for its seaweed cultivation project in Semporna, Sabah.

“The funds raised will be used for the cultivation of seaweed. Currently, about 150 acres of sea land is planted,´said Hansard chief operating officer Harry Koh. “With the funds raised, we want to expand to 2,000 acres.”

“The RM20 million is for the first phase of our project. We still need another RM30 million for the setting up of processing plant,” he said, adding that the company aims to eventually have 5,000 acres of sea land cultivated.

Koh was speaking to reporters after the signing of a contractual agreement between Hansard and CZX Holdings Co Ltd and TDR Corp Sdn Bhd to facilitate the listing.

CZX is the only firm approved to undertake listings on HXEE, while financial advisory firm TDR has been appointed by CZX as its licensed agent and facilitator within the Asean region.

Koh said Hansard targets to be listed on another stock exchange in Hong Kong, mainland China or Taiwan in two to three years’ time after the listing on HXEE on June 18.

Hansard’s seaweed cultivation project is located in the sea off Pulau Sebangkat in Semporna.

Hansard chief executive officer Wong Chong Yin said the seaweed business has huge potential for growth.

“The reason we choose HXEE is because China is the world’s largest importer of seaweed and Hansard’s largest market,” Koh said.

He added that the seaweed, which is edible with high nutrients, can also be used for cosmetic and other industrial purposes. It is trading at US$1,000 to US$1,200 per tonne. About a tonne of seaweed can be harvested from an acre of sea land.

TDR managing director Vic Chuah said his company is preparing for the listing of about 15 Malaysian companies, along with companies from Singapore, Cambodia and the Philippines, on HXEE.

“HXEE has a 30 company quota for oversea companies this year. We hope to fill the quota,” he said.

“There are ready registered investors at HXEE. The capital market in China has been growing by leaps and bounds. This is where Malaysian and Asean companies can tap into,” he said.

HXEE is one of China’s leading National Equities Exchange and Quotations (NEEQ) platforms that is modelled after the OTC (Over-The-Counter) Bulletin Board of the United States.

CZX president Chen Yong Ming said there are about 1,800 companies listed on HXEE, mainly from China, Hong Kong and Taiwan.

“There are eight companies that have ‘graduated’ from HXEE and are listed on other stock exchanges,” he said.

Chen said CZE also acts as an incubator to assist potential small and medium companies at different areas including financing, advisory, management, merger and acquisition.

“We see opportunities in Malaysia and the Asean region, in line with the China government’s One Belt, One Road initiatives,” he said.


View original article at: Hansard to raise RM20m from China exchange listing


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