kuala lumpur: TSA Group Bhd, a distributor and supplier of ferrous and non-ferrous metals and other industrial hardware products, and a manufacturer and processor of stainless steel pipes and other metal products, has raised RM42.53 million in its initial public offering. We are aiming to raise (IPO) publicly on ACE Market.
“The main purpose of this listing exercise is for TSA to enter the Malaysian capital market and expand its business,” TSA Group Managing Director Chew Quang Fah said at today’s prospectus launch. ” he said.
He said 47% of the RM42.53 million raised will be used to repay existing borrowings within five months of listing. He explained that this move is a step towards strengthening the Group’s financial base, reducing debt and minimizing interest costs, thereby strengthening its financial resilience.
A further 29% of the proceeds raised will be allocated to strengthening working capital and improving operational efficiency over the next 36 months.
At the same time, we are investing 12% of our profits in the establishment of our Semenyih manufacturing facility.
Chew said the investment is part of its growth strategy and the factory will begin operations within 24 months of its listing. The remaining funds will be used for listing costs.
TSA Group primarily employs direct sales channels. Customers purchase products for use in manufacturing (47.5%), manufacturing (16.1%), construction (5.0%), and plant maintenance (4.6%).
Malaysia is the largest market for TSA, accounting for RM182 million (77.6%), RM239.7 million (79.2%) and RM293.6 million (82.2%) of its total revenue in FY2020, FY21 and FY2021. ), accounting for RM178.5 million (81.0%). 23 years each.
Our subsidiary, TSA Industries, primarily serves customers in Malaysia and other countries, with the exception of Singapore and Batam, Indonesia, which are served by our subsidiary, TSA Singapore.
In FY21, FY22 and FY23, Singapore was the Group’s largest overseas market, contributing RM30.2 million (10%), RM39.6 million (11.1%) and RM32.7 million (14.8%) to total revenue, respectively. .
However, so far in FY2020, Thailand remained the company’s largest overseas market accounting for RM20.3 million (8.7%) of its annual total revenue.
Of the 77.33 million new shares, 15.46 million ordinary shares have been made available for application by Malaysian citizens, a further 15.46 million shares have been made available to eligible employees, and 38.66 million shares have been made available to the Ministry of Investment, Trade and Industry. private placement to Bumiputera investors, and 7.73 million shares will be issued through the Company. Private placement to selected investors.
Based on the issue price of RM0.55 per share, TSA will have a market capitalization of RM170.12 million at the time of listing.
AmInvestment Bank Bhd is the lead advisor, sponsor, underwriter and placement agent for this IPO.
TSA is scheduled to be listed on the ACE Market on February 2, 2024.
