KUALA LUMPUR: Golden Destinations Group Bhd has signed an underwriting agreement with UOB Kay Hian (M) Sdn Bhd (UOBKH) in conjunction with its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).
Golden Destinations curates travel packages under its flagship Golden Destinations (GD) brand and operates mainly in the B2B segment, serving a network of travel agents.
Under this model, it typically does not sell outbound travel products and services directly to end-consumers.
According to Golden Destinations’ prospectus exposure, the IPO comprises a public issue of 200 million new ordinary shares and an offer for sale of 100 million existing shares.
Of the total shares offered, 50 million will be made available to the Malaysian public, including 25 million issue shares set aside for Bumiputera investors under the balloting process.
A further 35 million shares will be reserved for eligible directors and employees of the group, as well as individuals who have contributed to the group’s success.
The offer for sale comprises 100 million shares to be placed out to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). Pursuant to the underwriting agreement, UOBKH will underwrite 85 million issue shares of the company.
Golden Destinations managing director Mita Lim said the signing of the underwriting agreement marks a key milestone in the group’s corporate journey as it moves closer to its listing on the ACE Market.
“The proposed IPO is intended to strengthen our business expansion, where we enhance our ability to scale our operations, broaden our product offerings, strengthen our branding and expand our market presence in the industry, while continuing to deliver curated outbound travel experience packages through our established distribution network.”
Meanwhile, UOBKH executive director David Lim said the company has built a solid position in the outbound travel segment, supported by a broad travel product suite and an established operating platform.
He added that the firm looks forward to working closely with the group as it transitions into a publicly listed company and advances its next phase of growth.
