KUALA LUMPUR (Aug 11): Full-service travel agency Golden Destinations Group Bhd has filed for a listing on the ACE Market to raise funds for business expansion and working capital requirements.

Golden Destinations has plans to set up a new headquarters, expand to Sarawak and Singapore, and upgrade its existing information technology system, according to its draft prospectus. The company also plans to spend on marketing activities and add up to 90 new hires to its workforce.

“We intend to acquire and set-up a new HQ to be located in Kuala Lumpur city centre to house all our operations” currently spread across various floors and buildings in Kuala Lumpur, the company said. “We are in the midst of identifying a suitable premise.”

Established in December 1991, the company made a profit of RM31.61 million after tax in 2024, more than double from a year earlier, as revenue increased by 38% to RM597.49 million.

The proposed initial public offering (IPO) comes at a time of global travel rebound and as China, its biggest market, allowed travellers from Malaysia to enter the country visa-free for up to 30 days. Malaysia has similarly exempted passport holders of China to enter Malaysia without a visa.

Golden Destinations mainly operates within the business-to-business space, serving a network of licensed travel agents rather than selling its products and services directly to end-consumers.

The company curates travel and cruise packages distributed through a network of 789 travel agents across Malaysia, as well as provides standalone travel support services such as flight ticketing services. 

Sales of travel packages accounted for nearly two-thirds of its revenue, followed by ticketing services that provided 28% to its topline.

Under the proposed public issue, the company will set aside 50 million shares for the public and 35 million shares for eligible persons. Meanwhile, 90 million shares will be allocated to selected investors and another 25 million new shares to Bumiputera investors, both via private placement.

Meanwhile, proceeds from the offer for sale will accrue entirely to its shareholder and managing director Mita Lim Swee Kok. Post-IPO, Lim’s stake will be diluted to 70.15% from the current 100% stake in the company.

UOB Kian Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.