KUALA LUMPUR (April 23): Shares of Topmix Bhd surged 32% in its trading debut on Tuesday after the surface decorative products company’s initial public offering (IPO) on the ACE Market raised RM31.7 million.
Topmix opened at 41 sen on a volume of 12.24 million shares versus its IPO price of 31 sen per share before climbing as high as 45.5 sen on Bursa Malaysia. The stock was trading at 44 sen at 9.10am after 56.14 million shares changed hands. The country’s benchmark index was up 0.2%.
Demand from investors was strong during its IPO, with the public tranche oversubscribed by 58.61 times. The Bumiputera portion was oversubscribed by 51.86 times while the other public category was oversubscribed by 65.26 times.
Shares set aside for eligible persons, Bumiputera investors, and select investors offered through private placement were fully taken up. The existing shares on offer to select investors were also fully placed out.
Topmix mainly sells so-called high-pressure laminate (HPL) products used in kitchen and office cabinets as finishing under its own brand as well as in collaboration with third-party decor paper suppliers.
The sale of new shares raised RM25.6 million, of which RM11.3 million or 44.2% has been earmarked for general working capital. The company also plans to use 23.3% of the proceeds for business expansion.
Topmix also allocated 20.8% to expand into the assembly of melamine-faced chipboard products while the remaining 11.7% will be used to defray listing expenses.
The offer-for-sale, meanwhile, raised RM6.10 million, which will accrue entirely to selling shareholders Teo Quek Siang, who is also the managing director, and executive director Tan Lee Hong.
For the fourth quarter ended Dec 31, 2023 (4QFY2023), the group reported a net profit of RM2.84 million on the back of RM21.64 million revenue.
For FY2023, Topmix registered a net profit of RM8.39 million on the back of RM72.68 million revenue, primarily due to the sales of HPL products, which represented 95.15% of the total revenue.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
Read also:
Topmix eyes northern region for expansion amid development boom
Rakuten Trade values Topmix at 40 sen, expects FY2023-FY2026 earnings to grow at CAGR of 25%
Topmix posts RM2.84 mil net profit in 4Q ahead of ACE Market listing
Topmix IPO shares oversubscribed nearly 60 times ahead of ACE Market listing
Topmix begins taking orders for IPO to raise up to RM31.74 mil
ACE Market-bound Topmix expects growth amid recovery in property market