Minox enters into underwriting agreement with M&A Securities

Form left: Looi Poo Poo, executive director of Minox International Group; Cheong Chee Son, managing director of Minox International; Datuk Bill Tan, managing director of M&A Securities; and Gary Ting, head of corporate finance of M&A Securities

KUALA LUMPUR: Minox International Group Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.

In a statement, the distributor of stainless steel sanitary valves, tubes and fittings said the IPO comprises a public issuance of 90 million new shares, representing 25% of its enlarged share capital of 360 million shares, as well as an offer for sale of 18 million existing shares through private placement to selected investors.

Of the public issuance, 18 million new shares will be made available to the Malaysian public through balloting and 10.8 million to eligible directors, employees and persons who have contributed to the success of Minox.

16.2 million shares will go to selected investors through private placement and the balance 45 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”) through private placement.

Pursuant to the underwriting agreement, M&A Securities will underwrite 28.8 million new shares made available to the Malaysian public and pink form allocations.

"With imminent access to the broader equity capital market, we will have greater resources and flexibility to accelerate our expansion plans to increase market share, and capitalize on the opportunities in the growing sanitary valves and fittings industry," said Minox managing director Cheong Chee Son.

He said the proceeds of the IPO will be primarily earmarked for expanding the business including product development and deployment to further tap into semiconductor clientele via specialised products; construction of a new warehouse in Puchong to support higher business volume; and setting up of a new warehouse in Singapore to enhance export sales.

Other use of the proceeds will include paring down of borrowings, working capital use and defrayment of listing expenses.

Minox is scheduled to be listed on the ACE Market by October 2023, with M&A Securities as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.