KUALA LUMPUR: OSK Holdings Bhd has permanently aborted plans to list its indirect subsidiary OCC Cables Ltd in Hong Kong, citing “continuous adverse global market conditions”.

In a filing with Bursa Malaysia yesterday, OSK Holdings said the termination of the listing is not expected to have any material impact on the group’s consolidated earnings per share and net assets per share for the financial year ending Dec 31, 2018 (FY18).

However, the group will expense off RM12.1 million for FY18 as costs in relation to the proposed listing.

On March 26, OSK Holdings announced that it was considering listing its cable business on the Main Board of the Stock Exchange of Hong Kong Ltd.

The proposed listing was originally slated for Oct 19, and its initial public offering (IPO) exercise was expected to raise net proceeds of HK$149 million (RM79.52 million). OSK Holdings had also shared that the main objective of the exercise was to expand the capacity of OCC Cables’ Melaka power cable plant, which is currently running at a high utilisation rate.

OCC Cables is a wholly-owned subsidiary of OSK Industries Ltd, which in turn is a wholly-owned subsidiary of PJ Development Holdings Bhd, a unit of OSK Holdings.

Upon completion of the proposed listing, OSK Holdings would have continued to be a controlling shareholder holding not more than 75% of the enlarged issued share capital of OCC Cables.

However, OSK Holdings announced on Oct 12 that it had decided not to proceed with the listing of OCC Cables due to the adverse global market conditions.

OSK Holdings shares closed down 0.5 sen, or 0.6%, at 86 sen yesterday, for a market capitalisation of RM1.78 billion.