KUALA LUMPUR (Jan 2): AGX Group Bhd, a third-party logistics service provider preparing to go public on the ACE Market of Bursa Malaysia, has signed an underwriting agreement with TA Securities Holdings Bhd to underwrite a total of 21.65 million new shares in AGX's upcoming initial public offering (IPO).

AGX's IPO comprises a public issue of 96.5 million new shares, and an offer for sale of 30 million existing ordinary shares. Out of the 96.5 million new shares, 21.65 million will be made available to the public via balloting, with 6.32 million shares allocated to eligible directors and employees of the group. The remaining 68.53 million new shares will be privately placed with selected investors.

TA Securities also serves as the principal adviser, sponsor, and placement agent for the group's IPO.

Established in 2004, AGX specialises in third-party logistics services, spanning sea and air freight forwarding, aerospace logistics, warehousing, and road freight transportation.

The group operates physically in Malaysia, the Philippines, South Korea, Myanmar, Singapore, and Cambodia (via an associate), facilitating the transportation of goods from origin to final destinations.

AGX also provides aerospace logistics services involving the coordination of air freight for aircraft parts, components, and equipment, thereby distinguishing the group within the industry.

According to AGX, the group plans to utilise the IPO proceeds to expand its business both domestically and internationally, encompassing the establishment of new warehouses and offices in Penang and Johor Bahru, as well as a new office in Busan, South Korea, to strengthen its regional presence.

Additionally, a portion of the funds will be allocated for working capital, repayment of bank borrowings, and covering listing expenses.

Datuk Ponnudorai Periasamy, AGX's group chief executive officer and executive director, said that the IPO will enhance the group's regional presence and further validate its services, particularly in aerospace logistics, where its clientele consists of regional airlines.