TSA Group Bhd, a distributor and supplier of ferrous and non-ferrous metal and other industrial hardware products, has sealed an underwriting agreement with AmInvestment Bank Bhd for its upcoming initial public offering (IPO) of 77.325 million new ordinary shares on the ACE Market of Bursa Malaysia.
The IPO of the company which is also a manufacturer and processor of stainless steel pipes and other metal products represents 25.0% of the group’s enlarged share base of which 15.46 million shares are available for application by the Malaysian public.
Another 15.465 million shares are available for application by eligible employees, 38.663 million shares are available by way of private placement to Bumiputera investors approved by the Investment, Trade and Industry Ministry (MITI) and 7.733 million shares are meant for private placement to selected investors.
AmInvestment Bank will underwrite 30.930 million shares made available for application by the Malaysian public and eligible employees.
The execution of the underwriting agreement with AmInvestment Bank represents a significant milestone for the group as it moves closer to becoming a publicly traded company in Malaysia.
“We are excited with our ACE Market listing which will enhance our visibility and reputation in the industry while enabling our stakeholders to participate in the growth and continued expansion of our business,” commented Chew Kuan Fah who is the group managing director of TSA Group.
“With our strong track record in the trading of stainless steel and other metal products (30 years) as well as a manufacturer of stainless steel pipes (15 years), we are confident that our next phase of growth is a step towards value creation for our stakeholders.”
Added Chew: “This corporate milestone will upscale our group to new heights by strengthening our balance sheet, tapping into new opportunities and meeting the growing demand in the industry from our main markets in Malaysia and Singapore.”
Proceeds from the IPO exercise will be used for capital expenditure, working capital, repayment of bank borrowings and listing expenses. AmInvestment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO. – Nov 29, 2023
