KUALA LUMPUR (Dec 11): Specialty chemicals company SumiSaujana Group Bhd said it has received approval for its initial public offering (IPO) on the ACE Market from Bursa Malaysia.

The approval follows a draft prospectus filed in August with Bursa. The company did not specify a timeline for the listing, though a company would have six months to complete the IPO from the approval date.

“The approval represents a significant milestone for SumiSaujana,” said the company's chief executive officer Norazlam Norbi in a statement. “This listing will provide us with the capital needed to fuel our growth plans and further strengthen our reputation.”

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 2023, the company made a net profit of RM30.62 million on RM198.78 million revenue.

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.

Proceeds from the IPO have been earmarked for the acquisition of a warehouse, a corporate office, and a factory in Puncak Alam, Selangor, and to consolidate the company's operations that are currently housed in different locations in Selangor, Johor and Sarawak.

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

“These upgrades are set to enhance production capacity and meet increasing customer demand,” SumiSaujana said. “To drive international growth, the group is exploring opportunities to establish new production facilities and joint ventures in foreign countries within the North America and the Middle East.”

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

Meanwhile, any money raised from the sale of existing shares will accrue entirely to Norazlam, 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 principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

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