KUALA LUMPUR: Inorganic chemicals market player TMK Chemical Bhd (TMK) is set to raise approximately RM385 million through its initial public offering (IPO) as it gears up for its debut on the Main Market of Bursa Malaysia. The company has scheduled its listing for December 12, 2024, marking a significant milestone in its business trajectory.
According to BERNAMA News Agency, the IPO consists of a public issue of 220 million new shares priced at RM1.75 per share, with no offer for the sale of existing shares. TMK Chemical has outlined a strategic plan for the allocation of the IPO proceeds, with 23.4 percent, or RM90.2 million, earmarked for the expansion of its Banting Plant 1. Additionally, 12.9 percent (RM49.5 million) will be directed towards the construction of a new facility.
The company has also allocated 25.7 percent (RM99.1 million) for potential acquisitions, while 20.6 percent (RM79.4 million) is designated for working capital. Furthermore, 13.0 percent (RM50 million) of the funds will be used to
repay borrowings, with the remaining 4.4 percent (RM16.8 million) covering IPO and listing-related expenses.
Based on an enlarged issued share capital of 1.0 billion shares and a share price of RM1.75, TMK Chemical’s market capitalisation is projected to reach RM1.75 billion. The company has also announced its intention to distribute 30 to 50 percent of its profit after tax as annual dividends to shareholders.
Wong Kin Wah, TMK Chemical’s non-independent executive director and managing director, emphasized the company’s strategic vision and commitment to leveraging opportunities within the sector. Over the past 35 years, TMK Chemical has expanded its offerings to include chemical terminal services and recently ventured into manufacturing inorganic chemicals. The business has extended its reach across Malaysia, Singapore, and Vietnam, maintaining a steadfast commitment to delivering exceptional service and fostering strong customer relationships.
The public issue portion of the IPO is now open for subscript
ion, with applications closing at 5 pm. Maybank Investment Bank Bhd is serving as the IPO’s principal adviser, sole bookrunner, and sole underwriter.