World’s largest condom maker plans IPO
Malaysia-based condom producer Karex Industries is set to continue the IPO spree at the Bursa Malaysia with a planned public offering in 2013 to capitalise on what it describes as a “recession-proof market” with growth rates of about 8 per cent annually.
Karex says it will use the raised funds to double capacity of its current annual output of three billion condoms by 2015.
The company has factories in Pontian and Klang in Malaysia and in Hat Yai in Thailand. Its current market share is 15 per cent of the world’s condom market of 20 billion pieces a year. Its main competitors are UK-based Rekitt Benckiser with its Durex brand which produces condoms mainly in China, and US company Church & Dwight which sells condoms under the Trojan brand. All in all, there are currently 13 players in the global condom industry with other strong selling brands being Lifestyles, Beyond Seven, Trustex, Inspiral, Kimono, Pleasure Plus, Crown, Paradise, Okamoto, Ria and Impulse.
Karex is a contract manufacturer for some of the top global condom brands and sells its own house brand under the name of Carex.
Unknown to many, Malaysia has been the world’s largest producer of condoms since 2009 after it surpassed Thailand and continues to lead with exports. According to the Malaysian Rubber Export Promotion Council, Malaysia exported 4.37 billion pieces of condoms in 2012.
According to market research firm Global Industry Analysts, the global condom market is expected to be worth $6 billion in 2015, with a worldwide supply of 27 billion condoms annually, a “recession-proof market” due to growing demand especially in Southeast Asia and China, says Karex Executive Director Goh Miah Kiat.
But demand is also increasing from ailing economies such as Europe. “In uncertain times, people are more vigilant about birth control,” Kiat says.
Karex Industries is a family-owned business that started planting rubber trees in the southern Malaysian state of Johor in the 1960s and eventually expanded to processing. The family switched its focus to condom manufacturing with the founding of Karex in 1988. Today 1,000 employees produce condoms, lubricant as well as surgical probe covers. Carex condoms are made from natural rubber latex and sold in more than 30 countries in 17 different designs and colours at varying widths of between 49 and 60 millimeters, of which 52 millimeters is the most popular, the company says. WHO standards require the minimum length for a condom to be 160 millimeters, with 180 millimeters being recommended by the health organisation.
Karex’ planned IPO comes at a time when international investors are increasingly keen to invest in Southeast Asia and at the Bursa Malaysia in particular. 2012 has seen the largest IPOs ever in Malaysia, with the world’s second- and third-largest offerings this year by Felda Holdings and IHH Healthcare, raising a combined $5.4 billion, plus Satellite TV company Astro raising $1.5 billion.
In 2013, power producer Malakoff Berhad and long-haul budget airline AirAsia X have said to launch a stock listing.
Kuala Lumpur has risen to become the world’s fourth largest center for IPOs in 2012, overtaking other financial hubs including Singapore, Hong Kong and London, according to Bloomberg.
Growth in the Asean-5 economies – Indonesia, Thailand, Philippines, Malaysia and Vietnam – will most likely outpace the US and the euro zone next year, the International Monetary Fund said in a report in October. Asean-5 are expected to grow by 5.8 per cent in 2013, compared with 2.1 per cent in the U.S., 0.2 per cent in the euro region and 1.2 per cent in Japan, the IMF said.
Malaysia-based condom producer Karex Industries is set to continue the IPO spree at the Bursa Malaysia with a planned public offering in 2013 to capitalise on what it describes as a "recession-proof market" with growth rates of about 8 per cent annually. Karex says it will use the raised funds to double capacity of its current annual output of three billion condoms by 2015. The company has factories in Pontian and Klang in Malaysia and in Hat Yai in Thailand. Its current market share is 15 per cent of the world’s condom market of 20 billion pieces a year. Its...
Malaysia-based condom producer Karex Industries is set to continue the IPO spree at the Bursa Malaysia with a planned public offering in 2013 to capitalise on what it describes as a “recession-proof market” with growth rates of about 8 per cent annually.
Karex says it will use the raised funds to double capacity of its current annual output of three billion condoms by 2015.
The company has factories in Pontian and Klang in Malaysia and in Hat Yai in Thailand. Its current market share is 15 per cent of the world’s condom market of 20 billion pieces a year. Its main competitors are UK-based Rekitt Benckiser with its Durex brand which produces condoms mainly in China, and US company Church & Dwight which sells condoms under the Trojan brand. All in all, there are currently 13 players in the global condom industry with other strong selling brands being Lifestyles, Beyond Seven, Trustex, Inspiral, Kimono, Pleasure Plus, Crown, Paradise, Okamoto, Ria and Impulse.
Karex is a contract manufacturer for some of the top global condom brands and sells its own house brand under the name of Carex.
Unknown to many, Malaysia has been the world’s largest producer of condoms since 2009 after it surpassed Thailand and continues to lead with exports. According to the Malaysian Rubber Export Promotion Council, Malaysia exported 4.37 billion pieces of condoms in 2012.
According to market research firm Global Industry Analysts, the global condom market is expected to be worth $6 billion in 2015, with a worldwide supply of 27 billion condoms annually, a “recession-proof market” due to growing demand especially in Southeast Asia and China, says Karex Executive Director Goh Miah Kiat.
But demand is also increasing from ailing economies such as Europe. “In uncertain times, people are more vigilant about birth control,” Kiat says.
Karex Industries is a family-owned business that started planting rubber trees in the southern Malaysian state of Johor in the 1960s and eventually expanded to processing. The family switched its focus to condom manufacturing with the founding of Karex in 1988. Today 1,000 employees produce condoms, lubricant as well as surgical probe covers. Carex condoms are made from natural rubber latex and sold in more than 30 countries in 17 different designs and colours at varying widths of between 49 and 60 millimeters, of which 52 millimeters is the most popular, the company says. WHO standards require the minimum length for a condom to be 160 millimeters, with 180 millimeters being recommended by the health organisation.
Karex’ planned IPO comes at a time when international investors are increasingly keen to invest in Southeast Asia and at the Bursa Malaysia in particular. 2012 has seen the largest IPOs ever in Malaysia, with the world’s second- and third-largest offerings this year by Felda Holdings and IHH Healthcare, raising a combined $5.4 billion, plus Satellite TV company Astro raising $1.5 billion.
In 2013, power producer Malakoff Berhad and long-haul budget airline AirAsia X have said to launch a stock listing.
Kuala Lumpur has risen to become the world’s fourth largest center for IPOs in 2012, overtaking other financial hubs including Singapore, Hong Kong and London, according to Bloomberg.
Growth in the Asean-5 economies – Indonesia, Thailand, Philippines, Malaysia and Vietnam – will most likely outpace the US and the euro zone next year, the International Monetary Fund said in a report in October. Asean-5 are expected to grow by 5.8 per cent in 2013, compared with 2.1 per cent in the U.S., 0.2 per cent in the euro region and 1.2 per cent in Japan, the IMF said.
