KUALA LUMPUR: Amid geopolitical uncertainties, Golden Destinations Group Bhd is doubling down on growth, with 81% of its initial public offering (IPO) proceeds set aside for expansion.
Ahead of its April 16, 2026 scheduled debut on the ACE Market of Bursa Malaysia Securities Bhd, the company said while energy price shocks may weigh on outbound tourism, it remains confident on its group series travel packages to drive resilient growth.
The company operates mainly through a business-to-business (B2B) model, serving a nationwide network of travel agents.
“Our business model is focused on series travel, which essentially refers to group travel, where capacity and pricing are planned in advance,” it said.
The outbound travel experience curator aims to raise RM90mil from its IPO, allocating RM79.5mil to fuel expansion, including a centralised headquarters, marketing, Sabah and Sarawak operations, and information technology (IT) systems and operational infrastructure.
According to Golden Destinations executive director Lim Swee Chuan, the most important milestone will be the establishment of operations in Singapore.
“Outbound expenditure in Singapore is much higher than in Malaysia. Singapore’s spending is about two to four times higher than Malaysia’s.
“Although the population is smaller, the demand for outbound travel is very high,” he told a press conference during the company’s prospectus launch yesterday.
On geopolitical pressures in the Middle East and the spike in oil prices affecting the company, Golden Destinations chief operating officer Charles Lim said the firm has only been impacted minimally, as it already had a contract with an airline partner.
“Golden Destinations already had a contract with our airline partner, so they have to honour our fuel surcharge at this point, which follows the previous fuel surcharge,” he added.
Swee Chuan explained that the company’s business offers a unique model.
“Our major ticket sales come from two main series. This round of bookings was made about one year in advance and we have already secured sales until December 2026.”
He added that the company is shielded from energy-related cost volatility that typically impacts airline pricing, thereby protecting end-consumers from the burden of surcharge increases.
“For certain airlines, we can secure capacity up to March 2027, so the prices are fixed and will not change.
“We also have sufficient capacity, which is enough to meet demand, even at last year’s levels,” he further pointed out.
Swee Chuan said this would provide strong earnings visibility through the end of this year and into early next year.
“With costs locked in and pricing remaining flexible, we are well-positioned to manage margins effectively,” he said.
On that note, the company cited its scale as one of the largest players in the group travel market with its fixed costs, flexible pricing and ample resources to absorb surcharges.
It noted that demand has remained stable, including in key markets such as China, where sales expansion could further enhance profitability.
“For example, bringing sales back to China could further improve our margins.
“Regarding fuel surcharges, as one of the largest players in the market with the highest volume of group seat bookings, increases in fuel costs have minimal impact on us.
The company noted that typically, travellers worry about spending more when surcharges rise.
“However, based on our participation in recent travel fairs, demand has remained stable, demonstrating that our costs and pricing strategy are resilient.”
As for the company’s cost structure, it maintains a 4% margin, with marketing representing the largest component of expenses.
“One of our major costs has been marketing and advertising, which averaged around 12% of revenue last year.
“Moving forward, however, some of our brands are shifting to more direct-to-consumer channels, which reduces both marketing and promotional costs.”
The company said it now budgets about 4% annually for marketing, which is fully supported by revenue.
“Given the high-volume, low-margin nature of our business, this is manageable and sustainable as we offer both standalone products and our series group products.”
It said standalone products, such as hotel bookings sold to agents, have very thin margins since they are B2B and represent only a small part of the business.
“Our core focus remains the series group, whereby profit margins can reach up to 20% to 25%, thanks to our dynamic online system, which we have been integrating with travel agents for over 15 years,” it noted.
Additionally, Golden Destinations’ management indicated a clear shift in travel patterns, with consumers increasingly favouring East Asian destinations like China and Japan.
“When geopolitical incidents occur, travellers tend to change their travel patterns. Essentially, the main difference this year is just the shift back to Asia.
“While we initially expected more travel to Europe this year, tensions have shifted demand back to Asia, particularly East Asia. This segment is not only more profitable for us, but has historically been a major contributor to our revenue.”
Management also said its marketing efforts are a key driver of business growth with annual spending of around RM20mil together with other significant investments.
“Our central objective is to maintain a net profit margin of 4% to 5%.”
To achieve this, the company reiterated focus on the series tours (group travel packages), which are expected to deliver higher margins, while closely monitoring both marketing and operational costs
“Looking ahead, as we expand online and streamline operations, we may also reduce physical fare costs, further supporting profitability,” it said.
That said, Golden Destinations’ next growth phase will focus on developing its artificial intelligence (AI) capabilities as well.
“We’re building an AI-driven system where travellers can use a chatbot to access our B2B data, view destination options and see pricing, making trip planning simpler and more transparent,” it said.
On the IPO, Golden Destinations said with the issuance of 200 million new shares at an issue price of 45 sen per share, its market capitalisation would be RM450mil, based on an enlarged issued share capital of one billion shares.
Applications for the IPO will open at 10am on the date of the prospectus launch and will close at 5pm on April 6, 2026.
UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for Golden Destinations’ IPO.
