KUALA LUMPUR (Sept 8): Shares of aviation maintenance, repair and overhaul (MRO) services provider GTA Holdings Bhd (KL:GTA) closed at 33.5 sen on Tuesday, down 1.5 sen or 4.3% from its initial public offering price of 35 sen, after opening flat on its ACE Market debut.
At the closing price, GTA is valued at RM432.6 million.
Managing director and chief executive officer Datuk Nonee Ashirin Mohammed Radzi said GTA's immediate post-listing priorities include moving into a new operating facility by the end of this year and expanding its MRO services beyond engines.
“We have a new facility in U8 (in Shah Alam). So, hopefully by the end of the year, we will move into the new facility with a bigger capacity to do our business,” she told a press conference following the listing ceremony.
GTA, which has traditionally focused on engines, is also expanding into MRO services for landing gear, wheels and brakes for fixed-wing aircraft.
At its IPO price, GTA had a market capitalisation of RM451.97 million. The company raised RM71.75 million from the issuance of 205 million new shares, while an offer for sale of 124 million existing shares raised another RM43.4 million for selling shareholders.
GTA's Malaysian public portion was oversubscribed by 22.16 times, after receiving 13,797 applications for 1.5 billion shares worth about RM523.35 million.
Lembaga Tabung Angkatan Tentera (LTAT) is set to emerge as a substantial shareholder following the listing, after subscribing for a 5.6% stake in GTA's enlarged share capital under the institutional offering.
Based in Selangor, GTA mainly provides MRO services for helicopter and fixed-wing engines. It also sells aviation equipment, including new engines, engine modules and parts.
The company currently operates from the Helicopter Centre at Sultan Abdul Aziz Shah Airport in Subang, serving aviation operators, MRO-related customers and defence-linked end markets.
It also has OEM-linked relationships within the Safran SA and EPI Inc ecosystems.
Of the RM71.75 million raised from the public issue, RM25 million has been earmarked for a new operating facility, RM10 million for the expansion of its helicopter MRO activities in the Middle East, and RM5.9 million to expand into MRO services for landing gear, wheels and brakes. Another RM24.15 million is for working capital.
GTA said last month that its Middle East expansion is on hold while it assesses security risks in the region. The company is exploring opportunities closer to home, including Brunei.
Nonee Ashirin said GTA would potentially tie up with a regional partner in the Middle East, as it worked on meeting licensing and airworthiness requirements.
“We have actually identified the Middle East (for) the geographical expansion, and we are working towards achieving how to get into the market, potentially with a local partner over there,” she said.
She said GTA would announce any developments.
For the financial year ended Dec 31, 2025 (FY2025), GTA's net profit rose 10.5% to RM40.45 million from RM36.61 million a year earlier, while revenue increased 40.2% to RM331.78 million from RM236.65 million.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.