KUALA LUMPUR: TMK Chemical Bhd has launched the prospectus for its Main Market initial public offering (IPO), aiming to raise about RM385 million to fund the expansion of its plant, the construction of new facilities, and potential acquisitions.
The IPO, priced at RM1.75 per share, involves the issuance of 220 million existing shares and does not include any offer for sale of shares.
The listing will provide investors with up to 22 percent ownership in the company.
TMK is currently led by Datuk Lee Soon Hian, the youngest of the Lee brothers from plantation giant Kuala Lumpur Kepong. Soon Hian holds a 50.6 percent stake in the company.
The IPO application closes on November 29, with the listing scheduled for December 12, the company said in a statement.
At the offer price of RM1.75, the chemical management and storage company is expected to have a market capitalisation of RM1.75 billion.
"Our decision to pursue this IPO is driven by a clear vision of the future. We see significant opportunities within the sector and are committed to capitalise on them," said TMK's non-independent executive director and managing director, Wong Kin Wah.
The company also announced that it plans to set aside 30 per cent to 50 per cent of its net profit as an annual dividend for the shareholders.
TMK has allocated 23.4 per cent of the proceeds for the expansion of its Banting Plant 1, while 12.9 per cent will go towards the construction costs of a new facility.
Another 25.7 per cent has been budgeted for the pursuit of acquisitions to be identified, and 20.6 per cent will be allocated for working capital.
Additionally, 13 per cent is earmarked for the repayment of borrowings, and the remaining proceeds will cover IPO and listing-related expenses.
"TMK began its journey with humble beginnings in 1989, focusing on providing total chemical management services for inorganic chemicals. Over the past 35 years, we have expanded our service offerings to include chemical terminal services, and this year, we took a major step forward by vertically integrating into the manufacturing of inorganic chemicals.
"As our business has grown, so has our regional footprint, which now spans across Malaysia, Singapore, and Vietnam. Throughout this journey, our commitment to delivering first-class service has never wavered, enabling us to build long-lasting relationships grounded in trust with our valued customers," Wong said.