KUALA LUMPUR (Dec 12): TMK Chemical Bhd (KL:TMK) ended its first day of listing on the Main Market on Thursday with a 9.71% rise from its initial public offering price (IPO) of RM1.75.
The counter debuted at RM1.97, up 13% against its initial public offering (IPO) price of RM1.75 sen, after the company's IPO raised RM385 million on the back of strong investor demand.
At the closing price of RM1.92, the company is valued at RM1.92 billion.
This listing marks the 50th IPO on the local bourse so far this year and the 11th on the Main Market.
Investors snapped shares of TMK during the IPO, with the public portion oversubscribed more than 14 times, while the institutional offering of new shares was also fully taken up. There was no sale of existing shares.
WATCH: NEWS: TMK Chemical makes trading debut
Founded in 1989, TMK is currently controlled by Datuk Lee Soon Hian, the youngest of the billionaire Lee brothers of plantation giant Kuala Lumpur Kepong Bhd (KL:KLK).
TMK provides sourcing, processing and distribution of acids, alkalis, salts and other chemical products. The company began manufacturing chlor-alkali derivatives, such as sodium hydroxide or caustic soda used in the making of soap and detergents, at its Banting Plant 1 in May.
The company operates out of Malaysia, Singapore and Vietnam, and also provides bulk storage services for liquid chemicals at terminals in Pasir Gudang and Kemaman.
Proceeds from the IPO will be used for the expansion of the Banting Plant 1 and for construction of a new facility in Singapore, which includes chemical processing services in the region.
The company also intends to use RM99.1 million of the proceeds for acquisitions in the inorganic chemicals industry or other chemical-related industries. “We have identified a target business, but the acquisition plan is still in a preliminary phase,” according to the IPO prospectus.
The remaining funds will be allocated for the repayment of borrowings, working capital, and the balance for listing-related expenses.
Looking ahead, TMK noted its focus on the expansion of Banting Plant 1 and support for the construction of Banting Plant 2 — a new chlor-alkali manufacturing facility aimed at boosting production capacity.
The new plant is expected to substantially increase TMK's total annual manufacturing capacity for sodium hydroxide at a concentration of 32% to 432,000 tonnes upon commissioning by the end of 2026, with operations starting in the first quarter of 2027.
Maybank Investment Bank is the principal adviser, sole bookrunner and sole underwriter for the IPO.