Techbond Group to raise RM39.6m from IPO

Techbond's core activities are developing and manufacturing industrial adhesives and sealants.

KUALA LUMPUR: Techbond Group Bhd plans to raise RM39.67mil from the issuance of new shares ahead of its listing on the Main Market of Bursa Malaysia.

According to its prospectus on Tuesday, it is issuing 60.10 million new shares at an issue price of 66 sen each.

Of the 60.10 million new shares, it will offer 11.50 million units to the public, 6.0 million to eligible directors and employees and 23 million shares to be paced out to Bumiputera investors approved by the Ministry of International Trade and Industry. The remaining 19.60 million shares will be placed out to selected investors.

Techbond's core activities are developing and manufacturing industrial adhesives and sealants.

The listing exercise will see its share capital increase from 169.89 million shares or RM101.93mil to 230 million shares or RM141.60mil. Its tentative listing date is Dec 5.

Out of the RM39.67mil proceeds, it plans to use RM10mil to build a factory, RM17.24mil to purchase machinery and equipment and RM7.43mil as working capital. The remaining RM5mil will be used as listing expenses.

Techbond said 90% of its revenue is from the development and manufacture of industrial adhesives, namely water-based and hot melt adhesives for the past four financial years.

Its largest market was Vietnam, followed by Malaysia and Indonesia which, collectively, accounted for 85.9% to RM88.7% of its revenue.

Hence, it intends to use 72.5% of its IPO proceeds to finance its expansion in Vietnam.

In the financial year ended June 30, 2018, Techbond posted net profit of RM13.42mil while in FY17, it was RM19mil, FY16 RM15.51mil and FY15 RM12.64mil.

Its EBITDA margins was 20.73% in FY18, 24.57% in 2017, 22.30% in FY16 and 22.41% in FY15.

It has cash and cash equivalents of RM36.70mil at the end of FY18.

Techbond said it does not have a dividend policy.

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

CPO futures likely to trend lower next week
Oil ends week lower as demand concerns face Russia supply ban
CapBay empowers SMEs, offers investment opportunities
BFood aims higher amid rising competition
Bearish stance on bonds and currency
Steady outlook for luxury condominium segment
No major change in salaries
Short position: Narrowing of valuation discounts, Food for thought
Long way to go for Malaysian carbon market
CEO shares insights into group’s outlook

Others Also Read