KUALA LUMPUR: TSA Group Bhd (TGB) signed an underwriting agreement with AmInvestment Bank Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO entails a public offering of 77.32 million new ordinary shares in TGB, making up 25.0 per cent of the company's expanded share base.
Out of this, 15.46 million ordinary shares are open for application by the Malaysian public, another 15.46 million for eligible employees, 38.66 million via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and 7.73 million through private placement to selected investors.
AmInvestment Bank will underwrite 30.93 million ordinary shares made available for application by the Malaysian public and eligible employees.
TGB group managing director Chew Kuan Fah said the ACE market listing would enhance the company's visibility and reputation in the industry and enable stakeholders to participate in the company's business growth and continued expansion.
"With our strong 30-year track record in the trading of stainless steel and other metal products and as a manufacturer of stainless steel pipes for the past 15 years, we are confident that our next growth phase is a step towards value creation for our stakeholders," he said in a statement.
TGB is a distributor and supplier of ferrous and non-ferrous metal and other industrial hardware products and the manufacturer and processor of stainless steel pipes and other metal products, with its main markets in Malaysia and Singapore.
The execution of the underwriting agreement with AmInvestment Bank represents a significant milestone for TGB as it moves closer to becoming a publicly traded company in Malaysia.
"This corporate milestone will upscale our company to new heights by strengthening our balance sheet, tapping into new opportunities and meeting the growing demand in the industry," Chew added.
The proceeds from the IPO will be used for capital expenditure, working capital, repayment of bank borrowings and listing expenses.
AmInvestment Bank is the IPO's principal adviser, sponsor, underwriter and placement agent.