PETALING JAYA: TMK Chemical Bhd, slated to be listed on the Main Market of Bursa Malaysia on Dec 12, announced that the 20 million initial public offering (IPO) shares made available for application by the Malaysian public have been oversubscribed by over 14 times.
In a filing with Bursa Malaysia yesterday, the company said it received 14,739 applications for 305,549,900 IPO shares, with a total value of RM534.7mil, representing an overall oversubscription rate of 14.28 times.
The group’s IPO involves the issuance of 220 million shares priced at RM1.75 each.
For the bumiputra portion, 6,653 applications for 114,874,100 shares were received, reflecting an oversubscription rate of 10.49 times.
For the public portion, 8,086 applications for 190,675,800 shares were received, for an oversubscription rate of 18.07 times.
Meanwhile, the filing also reported that the institutional offering of 190 million IPO shares to institutional and selected investors, was also fully subscribed.
It said the notices of allotment will be posted to all successful applicants on Dec 11.
One of TMK Chemical’s founders, Datuk Lee Soon Hian, remains the major shareholder with a post-IPO 39.6% stake.
Lee is the brother of Tan Sri Lee Oi Hian and Datuk Lee Hau Hian, who control conglomerate Kuala Lumpur Kepong Bhd
.
It was reported that TMK Chemical’s IPO is entirely a public issue, with no shares being sold by its existing shareholders, meaning all proceeds from the exercise will go to the company.
Earlier, the group had noted that part of its listing proceeds will be allocated toward potential acquisitions and investments, particularly in the inorganic chemical industry, in order to optimise its own cost structure and expand networks.
The group, founded in 1989, is principally engaged in the provision of total chemical management comprising sourcing, processing and distribution of inorganic chemicals and value-added services, as well as the provision of chemical terminal services which encompasses bulk storage services.
It also provides chemical processing services, which entail the customisation of chemicals to achieve its customers’ product specifications and customised concentrations through dissolving, blending or dilution.
Furthermore, the group had commenced the manufacturing of other inorganic chemicals, including chlor-alkali derivatives, at its Banting Plant 1 in May this year.
TMK Chemical had stated that the expansion of this relatively new product line represents its strategy for the future, involving the construction of Banting Plant 2 to increase capacity for producing sodium hydroxide, chlorine and other derivatives.
Inorganic chemicals are utilised in a wide variety of manufacturing and industrial processes across numerous industries.
