KUALA LUMPUR: ACE Market-bound TSA Group Bhd
, to debut on Feb 2, 2024, aims to raise RM42.53mil from its initial public offering (IPO).
The IPO entailed a public offering of 77.32 million new ordinary shares in TSA priced at 55 sen per share, making up 25% of the company’s expanded share base.
Out of this, 15.46 million ordinary shares are open for application by the public, another 15.46 million for eligible employees, 38.66 million via private placement to bumiputra investors approved by the Ministry of Investment, Trade and Industry and 7.73 million through private placement to selected investors.
TSA will have a market capitalisation of RM170.11mil upon listing.
Group managing director Chew Kuan Fah said that 47% of the RM42.53mil IPO proceeds would be used to repay existing borrowings within five months of the listing.“This move is a step towards solidifying our financial base, reducing debt and minimising interest costs, thereby enhancing our financial resilience,” he said after launching the IPO prospectus here yesterday.
Chew said 29% has been allocated towards strengthening its working capital over the next 36 months and improving operational efficiency.
For expansion, he said the group is investing 12% of the proceeds into establishing its Semenyih manufacturing premises.TSA is a distributor and supplier of ferrous and non-ferrous metal and other industrial hardware products and a manufacturer and processor of stainless steel pipes and other metal products, with its main markets in Malaysia and Singapore. — Bernama
