KUALA LUMPUR: TMK Chemical Bhd, formerly known as Taiko Marketing Sdn Bhd, has filed for an initial public offering (IPO) on the Main Market of Bursa Malaysia.
The company provides total chemical management services and chemical terminal services (bulk storage).
Its majority and controlling shareholder, Datuk Lee Soon Hian, who owns 50.6% of the company, is one of the Lee siblings at Kuala Lumpur Kepong Bhd
.
According to its prospectus exposure, the company wants to expand its plant at Banting, construct a new facility in Singapore, acquire other assets and repay loans from the funds raised.
The IPO will consist of 220 million new shares representing 22% of the enlarged share base.
Of these, 190 million are allocated for institutional and selected investors and a retail offering tranche of 30 million new IPO shares at an IPO price to be determined later.
The Malaysian public will be allocated shares via balloting for 2% of the enlarged company.
Maybank Investment Bank Bhd is the principal adviser, sole bookrunner and sole underwriter of the IPO.
TMK was incorporated on Feb 20, 1989 by its co-founders Soon Hian and Datuk Lee Hau Hian.
The planned expansion of its Banting Plant 1 will see it construct its Banting Plant 2, which will occupy a land area of approximately 45,700 sq m to 55,900 sq m and will increase its manufacturing capacity of chlor-alkali derivatives, namely, sodium hydroxide, chlorine, hydrochloric acid, sodium hypochlorite and hydrogen.
“This will enable us to take on opportunities arising from increased demand as we secure more customers in the future, which will contribute to our financial performance,” it said.
“Our Banting Plant 2 will have the same manufacturing capacity as our Banting Plant 1 of 37,000 electrochemical units, which is equivalent to 176,127 tonnes of inorganic chemicals.
“Upon commissioning of our Banting Plant 2 in 2026, our total annual manufacturing capacity for sodium hydroxide, chlorine, hydrochloric acid, sodium hypochlorite and hydrogen is expected to reach 352,254 tonnes,” it added.
The company said it also plans to explore the possibility of increasing the range of chlor-alkali derivatives manufactured to include hydrogen peroxide, poly aluminium chloride and other inorganic chemicals.
According to a market intelligence report by Smith Zander, TMK Group has a 24.91% market share of the inorganic chemicals market in Malaysia, 9.08% in Vietnam and 23.98% in Singapore for 2023.
Apart from the TMK group, other similar companies operating in this space include Kong Long Huat Chemicals Sdn Bhd, SPCI Helm Malaysia Bhd and several subsidiaries of Batu Kawan Bhd, including the Chemical Company of Malaysia Bhd and Malay-Sino Chemical Industries Sdn Bhd.
“Among the list of key industry players, TMK Group is the leading industry player in the inorganic chemicals industry in Malaysia, based on the revenues in the respective latest available financial year of each key industry player,” Smith Zander said in its report.
