KUALA LUMPUR (Aug 22): Specialty chemicals company Sumisaujana Group Bhd has filed for an initial public offering (IPO) on the ACE Market to raise funds for the acquisition of several properties, including a factory, as well as to finance expansions.

The proposed IPO involves a public issue of 310 million new shares and an offer-for-sale of up to 90 million existing shares at a price to be determined later, according to its draft prospectus. All in all, the listing offers investors up to a 27.71% stake in the company.

Sumisaujana plans to acquire a warehouse, a corporate office, and a factory in Puncak Alam, Selangor, and consolidate its operations that are currently housed in different locations in Selangor, Johor and Sarawak, the company said.

“This will enable our group to streamline all our internal administrative and finance processes, increase efficiency, improve and expedite decision making and reduce travel time and costs for our staff and employees and other stakeholders,” Sumisaujana said.

Sumisaujana is mainly involved in the manufacturing of oil-and-gas specialty chemicals, trading of specialty and industrial chemicals, and provision of technical related support services. In the year ended December 2023, the company made a net profit of RM30.62 million on RM198.78 million revenue.

The company’s manufacturing facilities include three reactors with a total annual capacity of 10,700 tonnes, one hybrid blend-reactor tank with an annual capacity of 4,900 tonnes and supported by six blend tanks with a total annual capacity of 19,500 tonnes.

Under the public issue, the company is allocating 72.5 million new shares to the public and 24.4 million shares to eligible persons. Sumisaujana will also set aside 90.45 million shares to approved Bumiputera investors and 122.65 million shares to select investors through private placement.

Proceeds from the sale of new shares will also go towards the expansion of its research-and-development division, fund working capital requirements, and defray listing expenses.

Meanwhile, any money raised from the sale of existing shares will accrue entirely to a group of selling shareholders chief executive officer Norazlam Norbi, executive deputy chairman Toh Chee Seng, chief operating officer Ramli Mohamad, as well as Atreon Holdings Sdn Bhd held by the three of them.

RHB Investment Bank is the IPO’s principal adviser, sponsor, sole underwriter and sole placement agent.