KUALA LUMPUR (Jan 19): TSA Group Bhd, which is scheduled to make its ACE Market debut on Feb 2, said its initial public offering (IPO) was oversubscribed by 8.62 times by the Malaysian public.

In a statement Friday, the manufacturer of industrial hardware products, stainless steel pipes and metal products said the IPO received 4,304 applications for 148.78 million shares valued at RM81.83 million for the 15.465 shares made available to the Malaysian public.

The Bumiputera portion was oversubscribed 7.75 times — with 2,329 applications for 67.69 million shares received — while the public portion was oversubscribed 9.49 times — with 1,975 applications for 81.09 million shares received.

Another 15.46 million shares made available for application by eligible employees who have contributed to the success of the group have also been fully subscribed, said TSA Group.

Further, placement agent AmInvestment Bank Bhd confirmed that the 46.39 million shares available for application by way of private placement to selected investors as well as to Bumiputera investors approved by the Ministry of Investment, Trade and Industry have been fully placed out, it said.

The notices of allotment will be posted to all successful applicants on or before Jan 30.

The group set its IPO price at 55 sen a piece to raise some RM42.53 million of which 47% will be used to repay bank borrowings, 29% for working capital, 12% for the establishment of a manufacturing plant in Semenyih and 12% for listing expenses.

At 55 sen per share, the group is expected to have a market capitalisation of RM170.12 million after listing, valuing the company at about 4.23 times its price-earnings multiple — based on a net profit of RM39.85 million for the financial year ended Dec 31, 2022.

AmInvestment is also the principal adviser, sponsor, and underwriter for the IPO exercise.

Read more:
TSA Group prices IPO at 55 sen a share to raise RM42.5m on ACE Market