From left: MSB Global Group Bhd executive director Ow Chen Lun, executive director Lai Swee Ping and managing director Datuk Ow Kee Foo, with M&A Securities Sdn Bhd managing director Datuk Bill Tan and head of finance Gary Ting (Photo by Shahrin Yahya/The Edge)
KUALA LUMPUR (March 21): MSB Global Group Bhd, an aftermarket automotive parts and components distributor, on Friday launched its initial public offering (IPO) that could raise up to RM41.4 million from the ACE Market.
The IPO, priced at 20 sen per share, comprises the issuance of 133 million new shares and an offer for sale of 74 million existing shares, according to its prospectus. Collectively, the listing will offer investors a 21.8% stake in the company.
Application for the IPO will close April 4, 2025 with the company scheduled for listing on April 15, 2025.
MSB Global will have a market capitalisation of RM122 million upon listing based on the IPO price, valuing the company at 12.12 times its earnings for the financial year ended Dec 31, 2023 (FY2023).
In FY2023, the company made a net profit of RM8.26 million on revenue of RM63.87 million. Gross profit margin was 32.8% while profit before tax margin was 17.38%.
MSB Global is the exclusive distributor of GSP-branded automotive parts and components in Malaysia including driveshafts, wheel hub assemblies, suspension parts and steering racks.
The Johor-based company has also expanded its business to include the automotive lubricants and fluids through its in-house brands, FK Fukouka and ZR.Zuric, offering engine oil, automotive transmission fluid, gear oil, brake fluid, and other essential automotive fluids.
MSB Global is allocating 22.58% of the total proceeds from the public issue to buy new machinery and equipment, about 18.7% for the construction of a new factory and warehouse, and another 3.14% for its new in-house electric vehicle charger.
The company will also set aside 20.67% for the repayment of bank borrowings, while the balance is for the general working capital and to defray the listing expenses.
An offering of existing shares through private placement, meanwhile, will raise as much as RM14.8 million that will accrue entirely to managing director Datuk Ow Kee Foo, executive director Lai Swee Ping, and Lee Li Lian, the wife of a director in one of MSB Global’s subsidiaries.
M&A Securities is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.
- US seeks to control Ukraine investment, squeezing out Europe
- US beef sales to China skid after Beijing lets export registrations lapse
- HI Mobility debuts on Main Market with slight premium
- Iran oil-filled tankers build up off Malaysia as US sanctions mount
- Cars under US$30,000 risk becoming a casualty of Trump’s tariffs
- Kumpulan Perangsang Selangor proposes change of auditor
- Stocks with momentum on March 28, 2025: GDEX, Pecca Group
- Selangor fibreglass plastic maker WF Holding breaks below IPO price on Nasdaq listing day
- US Vice President Vance to visit Greenland, the island Trump wants to control
- Putin says rivalries are increasing in the Arctic, but Greenland situation has 'nothing to do' with Russia