KUALA LUMPUR (Aug 5): Aviation support company GTA Holdings Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its planned listing on the ACE Market.
HLIB will underwrite the entire 77.48 million retail shares, comprising 64.57 million shares for the Malaysian public — equally allocated between Bumiputera and non-Bumiputera investors — and 12.91 million shares for eligible directors and employees under pink form allocation.
The IPO exercise involves a public issue of 205 million new shares and an offer for sale of 124 million shares. All in, the listing offers investors a 25.48% stake in the company.
GTA is an investment holding company whose wholly owned subsidiary provides aviation maintenance, repair and overhaul (MRO) services specialising in helicopter and fixed-wing engines, their parts and components.
The group operates from the Helicopter Centre at Sultan Abdul Aziz Shah Airport in Subang and serves aviation operators, MRO-related customers and defence-linked end markets.
“Over the years, GTA has established itself as a trusted aviation MRO solutions provider through our technical expertise, strong customer relationships and strategic collaborations with global industry partners. This milestone will position GTA to accelerate the next phase of our growth, strengthen our regional presence and create sustainable value for our shareholders, customers, employees and all stakeholders,” its managing director and chief executive officer Datuk Nonee Ashirin Mohd Radzi said in a statement on Wednesday (Aug 5).
The proceeds from the public issue will be strategically deployed to support its long-term growth plan through the establishment of a new operating facility, the expansion of helicopter MRO footprint into the Middle East, and the diversification of its capabilities into the high-value landing gear, wheels and brakes MRO segment, she added.
A portion of the proceeds will also be allocated to working capital requirements and the defrayment of listing expenses.
“These investments are expected to expand our operational capacity, broaden our portfolio of aviation support services, unlock new growth opportunities across international markets, and further strengthen GTA's position as a leading integrated aviation MRO provider,” Nonee Ashirin added.
The IPO will also raise cash for Nonee Ashirin and non-independent non-executive directors Syed Abdul Rahman and Philippe Lubrano through an offer for sale of its existing shares, according to the exposure prospectus.
Post-listing, Nonee Ashirin’s stake will be diluted to 51.8%, from 66%, while Syed Abdul Rahman will have his stake diluted from 5% to 3.04% and Philippe’s stake will be reduced to 19.67%, from 29%.
For the financial year ended Dec 31, 2024 (FY2024), the group’s net profit nearly tripled to RM36.61 million, from RM12.73 million a year ago, as revenue increased by 86% to RM236.65 million, from RM127.39 million.
Its gross profit margin stood at 25.09% in FY2024, improved from 23.31% in FY2023 and 20.6% in FY2022.
HLIB is acting as the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.