KUALA LUMPUR (April 14): Polymer Link Holdings Bhd, which is involved in the manufacturing of plastic powder for general and specialty applications, is seeking a listing on the ACE Market of Bursa Malaysia.
According to its draft prospectus posted on Bursa Malaysia’s website on Monday, Polymer Link is planning to issue 97.1 million shares, representing 17.4% of its enlarged issued share capital.
The IPO also includes an offer for sale of 24.1 million existing shares, or a 4.3% stake, under its initial public offering.
Since 2011, Polymer Link’s principal business activity has been the manufacturing of plastic powder, which contributed to 64.7% of its total revenue in the financial year ending 2024.
The group is also involved in the trading of equipment and products and contract manufacturing, including rotational moulding (to manufacture hollow plastic products).
For its financial year ended September 30, 2024, the group made a net profit of RM10.3 million on the back of RM145.36 million revenue. Its gross profit margin was 27.5% while profit before tax margin was 12.6%.
Under the public issue, 28 million shares will be made available for application by the Malaysian public, 4.44 million shares to eligible persons under pink form allocations and 64.7 million shares will be made available by way of private placement.
Proceeds from the initial public offering will raise funds to expand Polymer Link’s Australian operations, besides the repayment of bank borrowings and working capital.
Proceeds from the offer for sale will accrue entirely to its group of shareholders, namely Polymer Link president and group chief executive officer Koh Song Heng, Teoh Lee Tean, group senior vice-president Koh Tat Chuan, head of supply chain and administration Koh Tat Wei, Angel Joseph Baculo Adarlo and Geeslin Montemayor Adarlo.
Post-IPO, under Koh, his spouse and children’s stakes will be diluted to a total of 24.3%. Meanwhile, Angel Joseph Baculo and Geeslin Montemayor stakes will be diluted to 11.7% each.
Hong Leong Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter.