STAINLESS steel products supplier TSA Group Bhd has made a triumphant debut on the ACE Market of Bursa Malaysia today. The group’s shares opened at 58 sen for a 5.6% premium from its issue price of 55 sen.
Serving over 3,000 customers in 12 countries globally, TSA had earlier witnessed strong investor response to its initial public offering (IPO) which was over-subscribed by 8.62 times and successfully raised RM42.53 mil in proceeds.
About RM5.1 mil or 12% of the IPO proceeds will be utilised to part-finance the construction of TSA’s RM52 mil plant in Semenyih which is expected to manufacture 48,000 tonnes of cold-rolled stainless-steel coils per year.
“This initiative is a significant leap for TSA as this strategic move aligns with our ongoing efforts to strengthen our market position, bolster revenue growth and offer more customised solutions to our clients,” TSA’s group managing director Chew Kuan Fah pointed out following the listing ceremony.
Slated to commence operations in 3Q 2026, the new production facility will have a monthly production capacity of 4,000 tonnes of cold-rolled stainless-steel coils. “This represents a new business avenue for the company,” added Chew.
The construction work for the Semenyih plant is expected to begin in 3Q 2024. Since its inception in 1993, TSA Group has solidified its market presence, cultivated a large and diverse customer base, offering a diverse portfolio.
AmInvestment Bank Bhd is the IPO’s principal adviser, sponsor, placement agent and underwriter.
At 3.52pm, TSA Group was up 1 sen or 1.62% at 56 sen with 47.54 million shares traded, thus valuing the company at RM173 mil. – Feb 2, 2024
