KUALA LUMPUR (March 13): SumiSaujana Group Bhd has opened applications for its initial public offering (IPO) at 24 sen per share that could raise up to RM96 million for its ACE Market listing.

The IPO will raise RM74.4 million for the company and RM21.6 million for its existing shareholders, according to the prospectus unveiled on Thursday. All in all, the listing will offer investors up to 28% of the company that manufactures specialty chemicals.

Applications for the IPO close on March 25, with listing targeted for April 9.

“We remain focused on staying ahead of industry trends and ensuring that our offerings align with the growing demand for advanced specialty chemicals,” said SumiSaujana’s chief executive officer Norazlam Norbi at the prospectus launch.

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.

At its IPO price of 24 sen per share, SumiSaujana’s market capitalisation is expected to clock in at RM346.5 million, valuing the company at 11 times its historical earnings. In 2023, SumiSaujana recorded a net profit of RM30.62 million on revenue of RM198.78 million.

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

“With the funds raised, we will focus on expanding our production capacity, strengthening our global footprint, and reinforcing our commitment to delivering value to all our stakeholders,” Norazlam added.

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.

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

Meanwhile, funds 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, which is 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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