Topmix IPO oversubscribed by over 58.61 times

KUALA LUMPUR: Topmix Bhd, slated for a listing on the ACE Market of Bursa Securities on April 23, has seen its initial public offering (IPO) oversubscribed by 58.61 times.

The total surface decorative products company, in a statement, said its listing involves a public issuance of 82.7 million new ordinary shares, representing 21.0% of its enlarged share capital, as well as an offer for sale of 19.69 million or 5.0% of its enlarged share capital by way of private placement to selected investors.

Topmix is set to raise IPO proceeds of RM25.6mil at an IPO price of 31 sen per share.

It has received a total of 12,438 applications for 1.17 billion shares with a value of RM363.9mil for the 19.69 million shares allocated to the Malaysian public, representing an overall oversubscription rate of 58.61 times.

For the Bumiputera portion, the group received 7,108 applications for 520.48 million shares, reflecting an oversubscription rate of 51.86 times.

As for the other Malaysian public category, 5,330 applications were submitted for 653.41 million shares, resulting in an oversubscription rate of 65.36 times.

Meanwhile, 7.87 million shares made available for application by the eligible persons have also been fully subscribed.

Managing director Teo Quek Siang said Topmix’s growth strategy involves expanding into the assembly of melamine faced chipboard (MFC) products to increase our product range and reach new customer segments like furniture product manufacturers.

“Additionally, we aim to enhance Topmix's brand presence by establishing a sales office in Pulau Pinang, targeting business opportunities in the northern region of Peninsular Malaysia.”

“Moreover, we plan to increase our warehouse capacity in the central region to accommodate the rising demand for surface decorative products. This expansion will enable us to manage a larger inventory, ensuring prompt and cost-effective order fulfilment for our customers.

“Lastly, we will enhance our marketing and sales efforts and strengthen our Topmix HPL mobile application with features such as augmented reality technology and a 360 virtual tour of our showroom. These initiatives aim to heighten brand visibility and product awareness among our target audience,” he added.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.