KUALA LUMPUR (Nov 4): Polymer Link Holdings Bhd, a plastic powder supplier, on Tuesday launched its initial share sale that could raise more than RM30 million on the ACE Market.

The initial public offering (IPO) was priced at 25 sen per share, according to its prospectus unveiled on Tuesday. The IPO is expected to raise RM24.3 million for Polymer Link, and another RM6 million for a group of shareholders cashing part of their shares in the company.

Applications for the IPO will close on Nov 11, with the company scheduled for listing on Nov 25.

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.

The materials are used 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.

“Having previously been listed on the LEAP Market, today’s milestone reflects our growth in scale, maturity and readiness to engage a wider base of public investors,” Polymer Link group chief executive officer Koh Song Heng said in his speech at its prospectus launch.

Polymer Link is allocating 20.7% of the fresh funds to open a new warehouse to store manufactured plastic powder in Brisbane, Australia. The company has also earmarked 25.5% of the proceeds for working capital, 14.9% for purchases of new machinery, and 8.2% for repayment of bank borrowings.

The company is also setting aside 30.7% of the funds to defray estimated listing expenses, which may be re-allocated for working capital purposes.

Proceeds from the offer for sale will go to Koh and his wife Teoh Lee Tean, as well as shareholders Argel Joseph Baculo Adarlo, his wife Geeslin Montemayor Adarlo and Dr Paul James Nugent. While Koh's sons, Koh Tat Chuan (senior vice-president) and Kok Tat Wei (head of supply chain and administration), are part of the group's senior management, they are not among the offerors and will not receive proceeds from the offer for sale. 

Post-IPO, the combined stakes of Koh, his spouse, and children will be diluted to 24.3%, while the Adarlos shares will fall to 11.7% each.

Hong Leong Investment Bank serves as the IPO’s principal adviser, sponsor, sole placement agent, and sole underwriter.

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