SumiSaujana signs underwriting deal with RHB for ACE Market IPO

From left: Sumisaujana Group Bhd executive director/ chief operating officer Ramli Mohamad, SumiSaujana executive director and chief executive officer Norazlam Norbi, Sumisaujana executive deputy chairman Toh Chee Seng, RHB Investment Bank Bhd chief executive officer/managing director Kevin Davies, RHB Investment Bank head/director, group client coverage, private sector (local corporates) Joseph Soo and RHB Investment Bank director/ regional head, equity capital markets and syndication Ankur Khandelwal.

KUALA LUMPUR: SumiSaujana Group Bhd has signed an underwriting agreement with RHB Investment Bank Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

The oil and gas (O&G) specialty chemicals manufacturer, in a statement, said its IPO involved 310 million new shares and up to 90 million existing shares, making up 27.71% of its enlarged share capital.

SumiSaujana said a total of 72.5 million shares, equally split between Bumiputera and non-Bumiputera investors, have been allocated to the Malaysian public via balloting, representing 5.02% of the enlarged issued share capital.

Additionally, 24.4 million shares, or 1.69% of the enlarged issued share capital, have been set aside for eligible directors, employees, and contributors to SumiSaujana’s success.

For private placements, 122.6 million shares (8.50% of the enlarged issued share capital) have been allocated to identified institutional and selected investors.

Another 90.5 million shares (6.27%) have been reserved for identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).

Furthermore, under the offer for sale, 90.0 million shares (6.23%) will be placed with identified Bumiputera investors approved by MITI.

RHB Investment Bank, acting as the principal adviser, sponsor, sole underwriter, and sole placement agent, will underwrite 96.9 million issue shares allocated for the Malaysian public and eligible individuals.

SumiSaujana executive director and chief executive officer Norazlam Norbi said the partnership with RHB Investment Bank was an important step in the company’s journey to becoming a leader in the global specialty chemicals industry.

“The IPO proceeds will allow us to enhance our manufacturing capacity, expand our R&D capabilities, and explore new markets internationally. With RHB Investment Bank’s expertise, we are confident in the success of our ACE Market debut,” he added.

SumiSaujana will use the IPO proceeds to acquire the Puncak Alam Factory, build a new warehouse and corporate office, and install a solar PV system for sustainability.

Part of the funds will go towards a new research and development lab, IT infrastructure, and listing expenses.