KUALA LUMPUR (July 25): Polymer Link Holdings Bhd, a plastic powder supplier, announced on Friday that it has received approval-in-principle from Bursa Malaysia for its ACE Market listing.

"This milestone reflects the dedication of our team over the years and reinforces our long-term commitment to delivering customised polymer solutions to customers worldwide,” said Koh Song Heng, Polymer Link's president and group chief executive officer in a statement.

“With the added credibility and resources that come with being a listed company, we are confident in our ability to accelerate our growth trajectory and further strengthen our presence in the regional market,” he added.

Established in 2011, Polymer Link is in the plastic rotational molding supply chain. The group specialises in the formulation, compounding, and grinding of plastic powder for both general and specialty applications, as well as the production of colour masterbatch. These materials are essential for producing large, hollow plastic products through rotational molding, such as insulated cooler boxes, water tanks, diesel fuel tanks, playground equipment, and modular housing components.

Polymer Link operates through subsidiaries in Malaysia, the Philippines, India, Australia, and the US, serving a diverse customer base in over 10 countries. The group has three manufacturing facilities strategically located in Selangor, Malaysia; Pampanga, the Philippines; and Daman, India. These are complemented by overseas sales offices in Australia and the US, supporting its varied customer portfolio in the region.

Geographically, the Philippines is Polymer Link's largest market, accounting for 42.3% of its total revenue of RM145.3 million in the financial year ended Sept 30, 2024. India followed at 25.9%, Australia at 13.6%, and Malaysia at 7.5%.

Its proposed initial public offering (IPO) will involve a public issuance of 97.15 million new shares and an offer for sale of 24.08 million shares, with the price to be determined later, according to the draft prospectus filed with Bursa. The listing will offer investors up to a 21.6% stake in the company.

Koh said the planned IPO proceeds will be used to expand the company's physical footprint in Australia, acquire a new manufacturing line in Malaysia to support regional expansion, and invest in working capital to boost sales to customers in Poland.

“These strategic initiatives are critical to supporting our next phase of scale-up and customer delivery,” he said.

Additionally, IPO proceeds will be allocated for the repayment of bank borrowings and general working capital.

Proceeds from the offer for sale will go to the group's selling shareholders: Koh Song Heng, Teoh Lee Tean, group senior vice-president Koh Tat Chuan, head of supply chain and administration Koh Tat Wei, Argel Joseph Baculo Adarlo and Geeslin Montemayor Adarlo.

Post-IPO, the combined stakes of Koh, his spouse, and children will be diluted from 31.2% to 24.3%. Argel and Geeslin's stakes will each be diluted from 15% to 11.7%.

Hong Leong Investment Bank is serving as the principal adviser, sponsor, sole placement agent, and sole underwriter for the IPO.