Main Market-Bound TMK Chemical Aims To Raise RM385 Mln From IPO

KUALA LUMPUR, Nov 25 (Bernama) -- Inorganic chemicals market player TMK Chemical Bhd (TMK) aims to raise approximately RM385 million through its initial public offering (IPO) in conjunction with its listing on the Main Market of Bursa Malaysia.

The IPO involves the public issue of 220 million new shares priced at RM1.75 per share and does not involve any offer for the sale of shares.

The listing is scheduled for Dec 12, 2024.

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In a statement today, TMK Chemical said it has allocated 23.4 per cent of the proceeds amounting to RM90.2 million for the expansion of its Banting Plant 1, while 12.9 per cent (RM49.5 million) will go towards the construction costs of a new facility.

“Another 25.7 per cent (RM99.1 million) has been budgeted for the pursuit of acquisitions to be identified, and 20.6 per cent (79.4 million) will be allocated for working capital.

“Additionally, 13.0 (RM50 million) per cent is earmarked for the repayment of borrowings, and the remaining proceeds of 4.4 per cent (RM16.8 million) will cover IPO and listing-related expenses,” it said.

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TMK Chemical said that based on the enlarged issued share capital of 1.0 billion shares and share price of RM1.75, the market capitalisation amounts to RM1.75 billion.

The company also plans to set aside 30 to 50 per cent of its profit after tax as annual dividends for the shareholders.

TMK Chemical’s non-independent executive director and managing director, Wong Kin Wah, said the company’s decision to pursue the IPO is driven by a clear vision of the future where it foresees significant opportunities within the sector and is committed to capitalising on them.

“Over the past 35 years, we have expanded our service offerings to include chemical terminal services. This year, we took a major step forward by vertically integrating into manufacturing inorganic chemicals.

“As our business has grown, so has our regional footprint, which now spans Malaysia, Singapore, and Vietnam. Throughout this journey, our commitment to deliver first-class service has never wavered, enabling us to build long-lasting relationships grounded in trust with our valued customers,” he said.

The public issue portion of the IPO will be made available for subscription starting today, and the application will close at 5 pm. Maybank Investment Bank Bhd is the IPO’s principal adviser, sole bookrunner and sole underwriter.

-- BERNAMA