KUALA LUMPUR: Teamstar Bhd has signed an underwriting agreement with TA Securities Holdings Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement today, the home improvement solution’s provider said TA Securities is the principal adviser, sponsor, sole underwriter and sole placement agent for the company’s IPO, and will underwrite 40 million issue shares and 16 million offer shares.
Teamstar’s executive vice-chairman and group chief executive officer Tan Lee Kueng said the signing of the underwriting agreement not only reinforces confidence in the company but also brings it a step closer to becoming a publicly listed entity.
"This comes at an opportune time as we are ready to take advantage of the vast development opportunities in the home improvement industry in Malaysia.
"We plan to utilise part of the IPO proceeds to partially cover the cost of setting up 10 new retail outlets nationwide to increase our brand visibility and customer base,” he said.
He added that the company intends to strengthen its market presence by expanding its network of retail outlets in Malaysia, particularly in Johor, Kedah and Penang, as well as Sabah and Sarawak, marking its entry into the latter two states.
Teamstar’s IPO entails the public offering of 204 million ordinary shares comprising a public issue of 132 million issue shares and an offer for sale of 72 million offer shares, which collectively represent 25.50 per cent of the company’s enlarged issued share capital of 800 million ordinary shares.
Of the 132 million issue shares, 40 million shares will be made available for application by the Malaysian public while 92 million shares has been allocated via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
As for the offer for sale of 72 million shares, 16 million shares will be made available for application by eligible directors and employees of the Teamstar Group, as well as persons who have contributed to the success of the group; 48 million shares will be allocated for private placement to selected investors; and the remaining 8.0 million shares will be made available via private placement to identified Bumiputera investors approved by MITI. - Bernama
