KUALA LUMPUR (Sept 10): Vending massage chair operator RNG Tech Bhd is seeking to list on the ACE Market of Bursa Malaysia, with the exercise involving the sale of up to a 26% stake in the company.

According to its draft prospectus filed with the bourse, the initial public offering (IPO) will comprise a public issue of 126.08 million new shares, representing 16% of its enlarged share capital, and an offer for sale of 78.8 million existing shares, or 10%.

Post-listing, the group will have an enlarged share base of 788 million shares.

The IPO price per share and the indicative market capitalisation upon listing have yet to be determined.

Proceeds from the public issue will be channelled towards setting up new RNG stations and premium outlets, refurbishing and upgrading existing outlets, and repaying borrowings. The exact breakdown of the proceeds utilisation remains unspecified in the prospectus exposure.

Founded in Malaysia and incorporated in April 2024, RNG Tech claims to be the largest vending massage chair operator in Malaysia by revenue. Its business spans the provision of vending massage services, rental plans, and licensing of vending massage businesses.

Its vending massage chairs are located in high-traffic waiting areas such as shopping malls, airports, and highway rest stops. Beyond Malaysia, RNG Tech has a presence in Singapore, Thailand, Cambodia, and Brunei, and has licensing arrangements in Vietnam and the Philippines.

For the financial year ended Dec 31, 2024, the group reported a revenue of RM40.32 million and profit after tax of RM14.52 million, with a margin of 36%. This compares with RM23.32 million revenue and RM7.34 million profit a year earlier.

After the IPO, substantial shareholder Datuk Goh Cheh Yak’s stake will be pared down from 90.6% to 73.3%, while his spouse Datin Tan Sok Fei’s holding will fall from 9.4% to 0.7%. Tan is also the managing director of the company. Chief executive officer Chang Kai Ren and chief financial officer Shin Kok Leong will each hold 0.1% if they fully subscribe for their entitlements.

The company is chaired by Tengku Datuk Setia Putra Alhaj.

RNG Tech has adopted a dividend policy of distributing at least 30% of its annual profit after tax, subject to capital expenditure and working capital needs. The group declared RM8 million in dividends in FY2023, but none in FY2024.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.