KUALA LUMPUR (May 2): THMY Holdings Bhd has submitted its draft prospectus for an initial public offering (IPO) on the ACE Market to raise funds to finance its business expansion and repay bank borrowings.

THMY, via its subsidiaries, is primarily involved in the provision of automated test solutions for electrical and electronic (E&E) products used in various industries.

Based in Batu Kawan Industrial Park, Penang, the company was established in March 2008. It was co-founded by chief executive officer and executive director Ooi Can Nix and Loh Chee Fak.

According to the draft prospectus filed with Bursa Malaysia, THMY's proposed IPO includes a public issue of 143.91 million new shares and an offer for sale of 88.8 million existing shares at a price that will be determined later. The listing will offer investors up to a 26.2% stake in the company.

Under the proposed public issue, the company will allocate 44.4 million shares to the public and 23.53 million shares to eligible individuals.

Another 53.78 million shares will be allocated to selected investors, while the remaining 22.2 million new shares will be offered to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) — both through private placements.

It plans to use proceeds from the public issue to construct a new factory, repay bank borrowings, fund its design, research, development and working capital, and to cover listing expenses.

Proceeds from the offer for sale, meanwhile, will go to its co-founder Ooi, and his spouse, Chu Mooi Leng.

Ooi is currently the group’s largest shareholder with a 98.50% stake, of which 4.9% is indirectly held under his wife, Chu. The balance 1.5% in the company is held by its executive director Chew Yap Meng. Post-IPO, Ooi's stake will be diluted to 72.54%, while Chew's will be trimmed to 1.26%.

For THMY's seven months ended Oct 31, 2024 (7MFY2025), the company achieved a net profit of RM8.5 million — surpassing its annual earnings of RM6.75 million reported for its financial year ended March 31, 2024 (FY2024), when revenue was RM31.23 million. Its 7MFY2025 revenue was RM29.21 million, while gross profit margin was 52.16%; profit after tax margin was 29.11%.

Contributions from foreign markets constituted 72.59% of its revenue for 7MFY2025, with Thailand being its largest market (34.21%), followed by the US (22.2%).

The group posted an annual net profit of RM3.43 million in FY2023, nearly triple the RM1.32 million it made in FY2022, as revenue grew to RM32.5 million from RM25.77 million in FY2022. In FY2024, the top line stood at RM31.23 million.

Affin Hwang Investment Bank is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO.

Note: The article has been amended for accuracy.