Bursa sees strong listing uptake in first few months of 2024, with now Topmix Berhad launching its prospectus in conjunction with its upcoming initial public offering exercise on the ACE Market.
The Group markets and sells a wide range of own brand surface decorative products including high pressure laminate, compact panels, wall panels, PVC edging, decorative boards and PVC plywood used in a variety of commercial and residential interior surface applications. Its customer base spans local hardware product dealers, stockists, interior designers, contractors of residential and commercial properties, and carpenters.
The upcoming IPO exercise is set to raise RM25.6 million, with RM11.3 million (44.2%) earmarked for general working capital. Meanwhile, RM6.0 million (23.3%) is allocated towards business expansion, marketing and sales, including establishing a new sales office and expanding warehouse capacity. The Group also plans to allocate RM5.3 million (20.8%) to expand into the assembly of melamine faced chipboard products. The remaining RM3.0 million (11.7%) will be allocated towards defraying listing expenses.
Topmix’s IPO exercise encompasses a public issuance of 82.7 million new ordinary shares, representing 21.0% of its enlarged share capital, as well as an offer for sale of 19.7 million existing shares, or 5.0% of its enlarged share capital by way of private placement to selected investors.
Out of the 82.7 million new shares, 19.7 million shares will be made available to the Malaysian Public via balloting, 7.9 million shares to its eligible Directors, employees and persons who have contributed to the success of Topmix, while the remaining 55.1 million shares are reserved to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors via private placement.
Based on the IPO price of RM0.31 per share and its enlarged issued shares of 393.9 million shares, Topmix’s market capitalisation upon listing is approximately RM122.1 million.
The Group’s revenue rose from RM27.5 million in the financial year ended 31 December 2020 to RM65.8 million in the financial year ended 31 December 2022, representing a 2-year compound annual growth rate of 54.7%. Concurrently, the profit after tax also surged from RM2.4 million in FYE 2020 to RM8.5 million in FYE 2022, signifying a 2-year CAGR of 88.2%.
For the financial period ended 30 September 2023 (“FPE 2023”), the Group reported a revenue and net profit of RM51.0 million and RM5.6 million, respectively. HPL products segment accounted for 94.1% of the Group’s revenue in FPE 2023, while the remaining 5.9% is attributed to the other surface decorative products segment and kitchen and wardrobe accessories segment.
Following the prospectus launch, applications for the public issue are open from today and will be closed on 4 April 2024 at 5:00 pm. The Group is scheduled to be listed on the ACE Market of Bursa Securities on 23 April 2024.
M & A Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
