MST Golf Group Berhad has signed an underwriting agreement with RHB Investment Bank Berhad paving the way for its proposed initial public offering and listing on the Main Market of Bursa Malaysia.
The IPO entails the offering of 228.0 million ordinary shares, comprising a public issue of 160.0 million new Shares and an offer for sale of up to 68.0 million existing Shares involving:
- Institutional offering of up to 178.6 million IPO Shares to identified institutional and selected investors, including Bumiputera Investors approved by the Ministry of Investment, Trade, and Industry, Malaysia (formerly known as Ministry of International Trade and Industry, Malaysia); and
- Retail offering of 49.4 million Issue Shares to the Malaysian public, independent non-executive directors of MST Golf, eligible employees of MST Golf and its subsidiaries and persons who have contributed to the success of the MST Golf Group.
RHB Investment Bank will underwrite the 41.5 million Shares made available for the Malaysian public under the retail offering tranche.
Ng Yap, Executive Director and Group Chief Executive Officer of MST Golf said, “The signing of the underwriting agreement marks a significant milestone for us ahead of our listing on the Main Market of Bursa Securities. Since we began operations, we have expanded our presence from being solely in the Malaysian market into the wider Southeast Asia markets. We have a sound business model that has withstood the challenges of the Covid-19 pandemic, as we recorded a compounded annual growth rate of 8.3% in our Group revenue between 2019 and 2021, with a resilient gross profit margin of approximately 40.0% during the same period.
MST Golf has received approval from the Securities Commission Malaysia to list on the Main Market of Bursa Securities on 18 April 2023. Barring any unforeseen circumstances, MST Golf is expected to launch its prospectus by the end of June 2023.
RHB Investment Bank is the principal adviser, sole underwriter, and sole placement agent for this IPO exercise.
