TMK Chemical Bhd managing director Wong Kin Wah.—AZMAN GHANI/The Star
PETALING JAYA: TMK Chemicals Bhd, en route to a Main Market listing on Dec 12, plans to expand its product range and penetrate new markets through the proceeds from its initial public offering (IPO).
“We are constantly looking to expand not only into different market areas but also expand our product range. In some way, we are focusing on both,” deputy general manager Leong Xiao Lung told a press conference at the group’s prospectus launch yesterday.
TMK aims to raise RM385mil through its IPO, priced at RM1.75 per share.
It would involve no offer for sale of shares, with most proceeds channelled into the company’s growth plans.
It has earmarked RM99.1mil, or 25.7% of the IPO proceeds, for potential acquisitions and investments in inorganic chemicals or related industries.
While targets have yet to be identified, Xiao Lung said the focus remains on opportunities that complement its value chain.
Additionally, RM90.2mil, or 23.4% of the proceeds, will be allocated to constructing Banting plant two, adjacent to Banting plant one, which will double the group’s total annual manufacturing capacity for chlor-alkali derivatives upon its commissioning in end-2026.
“The new chlor-alkali derivatives manufacturing facility is expected to double our manufacturing capacity, enabling us to meet growing demands,” said managing director Wong Kin Wah during his speech.
Xiao Lung said Banting plant one, which began operations earlier in May, is already running at over 70% capacity.
“We foresee the plant to run at near 100% within a very short period of time,” he added.
Meanwhile, another RM49.5mil or 12.9% of the IPO proceeds will be used to establish a new processing facility in Singapore.
Regarding this, deputy chairman Leong Chao Seong said the current facilities in Singapore, which include three warehouses, are operating at full capacity.
“Our business in Singapore is quite sizable. So this is a natural thing for us to do, to expand in Singapore,” Chao Seong said.
While TMK has limited operations in Thailand, Xiao Lung said the group remains open to opportunities.
“If the numbers make sense, we’ll definitely jump at that opportunity when the time comes,” he said.
Xiao Lun said TMK’s chemicals cater to a wide range of industries, with no single sector contributing more than 10% of its revenue.
The group’s portfolio includes 4,427 stock-keeping units.
The group will use RM79.4mil or 20.6% of the IPO proceeds for working capital and RM50mil or 13% to pare down borrowings, with the remainder covering IPO-related expenses.
Upon listing, TMK Chemicals will have a market capitalisation of RM1.75bil, based on an enlarged share capital of one billion shares.
TMK’s listing marked the 49th IPO on the local bourse.
