At the IPO underwriting agreement. From left: Philip Lau Cher Liang, executive director of MTAG, Chaw Kam Shiang, MD of MTAG, Datuk Bill Tan, MD of M&A Securities & Goh Hock Jin, executive director of M&A Securities.
KUALA LUMPUR: MTAG Group Bhd
, enroute to a listing on the ACE Market of Bursa Securities, is eyeing to capture a significant slice of the local label and printing industry which is set to reach RM8.11bil in 2023.
The printing and materials converting specialist is scheduled to be listed on the ACE Market by September. The Group’s IPO exercise entails a public issue of 136.32mil new shares, representing 20% of its enlarged share capital.
The existing shareholders of the company would also make an offer for sale of 68.16 million shares to selected investors by way of private placement.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
MTAG Group managing director Chaw Kam Shiang added that the IPO proceeds would allow it to execute our expansion strategies. "These involves acquiring land for the construction of a new manufacturing plant and investing in machineries to improve capacity and production efficiency. Other utilisation of the proceeds from IPO include repayment of bank borrowings, working capital and defraying listing expenses,” he noted.
The expansion shall further strengthen MTAG’s position, enabling it to capture the demand growth of the local label and printing industry, which is set to reach RM8.11bil in 2023 from RM5.46bil in 2018 according to an independent market report by Protégé Associates.
MTAG recently has entered into an underwriting agreement with M&A Securities in conjunction with the IPO. Under the agreement, M&A Securities would underwrite new shares to be made available for the Malaysian public and its eligible directors, employees and persons who have contributed to the success of the Group.
Chaw noted that the company is now one step closer to be a listed on Bursa Securities, adding that the listing status enhances the Group’s reputation and credibility and accord it greater recognition amongst investors, stakeholders, existing as well as prospective customers.”
MTAG specialises in printing of labels and stickers and customised converting services based in Johor. The Group has the capability to convert a wide range of materials such as adhesive tapes and papers, mesh, plastics, foams, and metals into predefined shapes and sizes.
Besides, MTAG is also an authorised distributor for the renowned 3M and Henkel brands.
The Group distributes a variety of industrial tapes and adhesive products. MTAG has more than 20 years of experience and is currently serving more than 600 customers from various industries such as electrical and electronics, automotive, precision tooling, mechanical & engineering, and construction.
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