KUALA LUMPUR (April 18): Smart Asia Chemical Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd for the company’s initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement on Thursday, the company said the IPO shall entail a public issuance of 93.50 million new Smart Asia shares, whereby Mercury Securities will underwrite 30.59 million IPO shares, which comprises of 18.48 million IPO shares representing the portion made available to the Malaysian public via balloting and 12.1 million IPO shares to be allocated to eligible directors and employees, as well as persons who have contributed to the success of Smart Asia and its subsidiaries.
The remainder of 46.23 million IPO shares will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 16.68 million IPO shares will be by way of private placement to selected investors.
Smart Asia is principally involved in the development, manufacturing, distribution and sale of a wide range of decorative paints, protective coatings and paint-related products for both household and industrial applications.
According to Smart Asia, proceeds from the IPO will be utilised to partly finance the establishment of the Perak plant, inclusive of the construction plans, as well as the purchase and commissioning of an automated paint production system.
The remainder of the proceeds will be used for the purchase of 250 sets of smart colour POS tinting machines, working capital and listing expenses.
Smart Asia managing director Goh Chye Hin said the company is dedicated to advancing operational and automation capabilities across its products and services, towards an Industry 4.0 manufacturing plant.
“In the meantime, we are also consistently upgrading to provide pioneering solutions that meet the changing needs of our stakeholders.”
“With a talented team and a strong vision, while not forgetting the prompt support given by Mercury Securities, we are poised to unlock new opportunities and create lasting value for our stakeholders,” said Goh.
Smart Asia is expected to be listed on Bursa Malaysia’s ACE Market in the second quarter of 2024.
Mercury Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.