MSB Global targets to raise RM26.6mil from IPO

From left: Ow Chen Lun, executive director, MSB Global Group; Lai Swee Ping, executive director; Datuk Ow Kee Foo, managing director; Datuk Bill Tan, managing director (corporate finance) and executive director, M&A Securities Sdn Bhd; Gary Ting, head of corporate finance; and Danny Wong, deputy head of corporate finance

KUALA LUMPUR: Aftermarket automotive parts and component reseller MSB Global Group Bhd aims to raise RM26.6mil from an initial public offering (IPO) for the expansion of its business.

The company, which is en route to a listing on the ACE Market of Bursa Malaysia, is planning the issuance of 133 million new ordinary shares at a retail price of 20 sen per share.

MSB Global is the exclusive distributor of GSP-branded automotive parts and components in Malaysia, supplying a comprehensive range of high-quality aftermarket products.

These include driveshafts, wheel hub assemblies, suspension parts, steering racks, and more, ensuring durability and reliability for customers.

Meanwhile, the group has also expanded its footprint  in the automotive lubricants and fluids segment through its in-house brands, FK FUKUOKA and ZR.ZURIC.

At the launch of its prospectus, MSB Global revealed the plans for the use of the IPO funds, which includes RM4.97mil for the reconstruction of a new factory and warehouse to support lubricants and fluids production, and RM6mil for the purchase of machinery, equipment, and raw materials to establish blending and fill-and-finish production lines.

A further RM840,000 will go towards the launch and distrubiton of the group's in-house branded elective vehicle (EV) chargers.

Of the remaining funds, RM5.5mil will be used for repaying bank borrowings, RM4.79mil for general working cpaital and RM4.5mil for listing expenses.

"This IPO will allow us to solidify our position in the automotive aftermarket industry while enabling us to diversify and grow our product portfolio. From lubricant production to EV chargers, the funds raised will support our vision of delivering innovative and high-quality solutions to our customers.

"We remain committed to creating long-term value for our shareholders and contributing to the growth of Malaysia’s automotive sector," said MSB Global managing director Datuk Ow Kee Foo.

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