From left: Topmix Bhd executive director Jessie Tan Lee Hong, Topmix managing director Jack Teo Quek Siang, M&A Securities Sdn Bhd managing director Datuk Bill Tan and M&A head of corporate finance Gary Ting.
KUALA LUMPUR: Total surface decorative products company, Topmix Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Topmix's IPO involves a public issuance of 82.7 million new ordinary shares, representing 21.0% of its enlarged share capital. Additionally, there is an offer for sale of 19.7 million existing shares, equivalent to 5.0% of its enlarged share capital, through private placement to selected investors.
Out of the 82.7 million new shares, 19.7 million shares will be made available to the Malaysian public via balloting, 7.9 million shares to its eligible directors, employees and persons who have contributed to the success of Topmix. The remaining 55.1 million shares are reserved to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and selected investors via private placement.
M&A Securities will underwrite 27.6 million new shares made available to the Malaysian public and pink form allocations.
“With the signing of this underwriting agreement, we are now one step closer to listing our group on the ACE Market of Bursa Securities. The listing status is poised to enhance Topmix's standing among customers, strengthen our reputation and open up new avenues for growth,” Topmix managing director Teo Quek Siang said in a statement.
“Looking ahead, we are earmarking a portion of the IPO proceeds to expand our product range, aiming to broaden our offering of surface decorative products and target new customer segments.
“Additionally, we have outlined a clear trajectory for business growth, including geographical expansion to the northern region of Peninsular Malaysia, increasing brand and product awareness and expanding warehouse capacity in the central region of Peninsular Malaysia to support higher business volume.”
Teo said the group’s overall outlook on prospects is optimistic and demand for its surface decorative products is poised to benefit from the recovery and development in the residential and commercial property markets.
Topmix is scheduled to be listed on the ACE Market of Bursa Securities by April 2024, with M&A Securities as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
