KUALA LUMPUR (March 26): Golden Destinations Group Bhd, a tourism firm, is seeking to raise RM135 million from its listing on the ACE Market.
The initial public offering (IPO), priced at 45 sen per share, values the company at RM450 million, according to its prospectus. The IPO will raise RM90 million for the company and another RM45 million for its founder Mita Lim, an industry veteran with nearly four decades of experience.
Application is open from March 26 until April 6. The listing date is targeted for April 16.
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 over 800 travel agents across Malaysia, as well as provides standalone travel support services such as flight ticketing services.
More than 88% of the proceeds from the public issue of new shares have been earmarked for expansion that includes a centralised headquarters and spending on marketing activities. The company is also expanding in East Malaysia and Singapore and plans to upgrade its IT systems.
Further, Golden Destinations is also looking to add 90 new staff to its current workforce of over 280 employees to support operations and growth. The other remaining proceeds will go towards working capital and listing expenses.
Last year, the company made a profit of RM28.36 million after tax, on revenue of RM592.4 million. Sales of travel packages accounted for 73% of its revenue, followed by ticketing services and other services that provided 27% to its topline.
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.