KUALA LUMPUR: TSA Group Bhd is raising RM42.53 million from its initial public offering (IPO).
The industrial hardware products and stainless steel pipes and metal products manufacturer today launched its prospectus in conjunction with its listing on Bursa Malaysia's ACE Market on Feb 2 next year.
The IPO entials 77.33 million new shares, constituting 25 per cent of TSA's expanded post-IPO share base and priced at 55 sen per share.
"The distribution includes 15.47 million ordinary shares for the Malaysian public, an additional 15.47 million for eligible TSA employees, and 38.66 million ordinary shares for Bumiputera investors, as approved by the Ministry of Investment, Trade, and Industry.
"Furthermore, 7.73 million ordinary shares are designated for private placement among chosen investors," the company said.
TSA is expected to have a market capitalisation of RM170.11 million upon listing.
The company said of the total funds raised, 47 per cent will be used to settle borrowings within five months of the listing, with the primary objective of strengthening its financial base, reducing debt, lowering interest costs and fortifying financial resilience.
Another 29 per cent will be dedicated to reinforcing working capital over the next 36 months and enhancing operational efficiency.
TSA group managing director Chew Kuan Fah said it will invest 12 per cent from the proceeds
to the establishment of the company's Semenyih manufacturing plant as part of its growth strategies.
"It is slated for use within 24 months post-listing and is a testament to our commitment to scaling our operations and enhancing market reach. The remaining funds will cover the listing expenses," he said today.
Chew added that the new Semenyih facility will increase the company's production capacity.
Founded in 1993, TSA specialises in providing a variety of metal products such as stainless steel plates, bars, coils, and pipes.
It expanded its operations to include pipe manufacturing in 2008.