AGX Group Berhad has entered into an underwriting agreement with TA Securities Holdings Berhad for the Company’s Initial Public Offering on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO entails a public issue of 96,500,000 new ordinary shares and an offer for sale of 30,000,000 existing ordinary shares. Of the 96,500,000 Public Issue Shares, 21,650,000 Public Issue Shares will be made available to the Malaysian Public via balloting, 6,320,000 Public Issue Shares will be allocated to the eligible directors and employees of AGB and its subsidiaries, while the remaining 68,530,000 Public Issue Shares will be allocated by way of private placement to selected investors.
TA Securities will underwrite a total of 21,650,000 Public Issue Shares.
AGB is principally involved in the activities of holding companies. Through the subsidiaries, the AGX Group is primarily a third-party logistics service provider where its services comprise sea and air freight forwarding, aerospace logistics, warehousing and other 3PL, and road freight transportation services. It provides services to assist senders or receivers to transport their goods from the point of origin to their final destinations and has physical presence in Malaysia, the Philippines, Korea, Myanmar, Singapore and Cambodia (via associate).
The Group’s aerospace logistics services contribute to its business growth and set it apart from other logistics companies. The aerospace logistics services involve organising air freight for aircraft parts, components, and equipment. These are project-based and carried out as and when required. In many situations, the Group carries out time-critical aerospace logistics services to bring crucial aircraft items from suppliers or vendors’ facilities in various parts of the world, to where the malfunctioning aircraft-on-ground is located. The time-critical aspect of the aerospace logistics services is to facilitate AOG to be repaired and return to service in the shortest time possible.
The group plans to use the proceeds from the IPO for business expansion locally and abroad in the form of setting up new warehouses and offices in Penang and Johor Bahru as well as setting up a new office in Busan, South Korea in order to expand its presence in South Korea. Parts of the proceeds from the IPO have also been earmarked to fund working capital, repayment of bank borrowings as well as for listing expenses.
TA Securities, besides being the sole underwriter of AGB’s IPO, is also the Principal Adviser, Sponsor and Placement Agent for this exercise.