KUALA LUMPUR (Feb 5): Topmix Bhd, a total surface decorative products company en route to list on the ACE Market of Bursa Malaysia in April, has signed an underwriting agreement with M&A Securities Sdn Bhd, which will see the latter underwriting 27.6 million new shares made available to the Malaysian public and pink form allocations.

In a statement on Monday, Topmix said its initial public offering (IPO) consists of a public issuance of 82.7 million new shares, representing 21% of its enlarged share capital. Additionally, there is an offer for the sale of 19.7 million existing shares, or 5% of its enlarged share capital, via private placement to selected investors.

Out of the 82.7 million new shares, 19.7 million will be available to the Malaysian public via balloting, followed by 7.9 million to eligible directors, employees, and contributors to Topmix's success. The remaining 55.1 million shares are reserved for selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry, and selected investors through private placement.

Topmix, through its subsidiaries, primarily engages in marketing and selling its own surface decorative products. It also handles the design of such products, both internally and in collaboration with third-party décor paper suppliers.

The majority of the group's revenue comes from high-pressure laminate (HPL) products, known for their durability, cost-effectiveness, extended shelf life, and aesthetic appeal. Notably, all of Topmix’s HPL products comply with environmental standards.

Topmix's product portfolio extends to other surface decorative products, including compact panels, polyvinyl chloride (PVC) edging, wall panels, decorative boards, and PVC plywood marketed under its own brands. Additionally, Topmix holds an exclusive dealership for the Starax range of kitchen and wardrobe accessories.

Topmix managing director Jack Teo Quek Siang said the listing will enhance the company's reputation, strengthen customer relationships, and create new avenues for growth.

"Looking ahead, we are earmarking a portion of the IPO proceeds to expand our product range, aiming to broaden our offering of surface decorative products and target new customer segments.

"Additionally, we have outlined a clear trajectory for business growth, including geographical expansion to the northern region of Peninsular Malaysia, increasing brand and product awareness, and expanding warehouse capacity in the central region to support higher business volume," Teo said.

He added that Topmix aims to capitalise on the growing demand for surface decorative products driven by property market recovery and Malaysia's flourishing furniture industry.

M&A Securities serves as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.