Smart Asia Chemical Bhd unveiled its initial public offering prospectus with its proposed listing on the ACE Market of Bursa Malaysia Securities Berhad which is scheduled on 28 May 2024.
The company targets to raise estimated gross proceeds of RM37.4 million via the issuance of 93,500,000 new shares at an IPO price of RM0.40 per share. Based on the Group’s enlarged share capital of 369,850,420 shares and the aforesaid IPO price, the market capitalisation will be approximately RM147.9 million.
The proceeds raised is for the company to cater to the next phase of its business expansion it said. Smart Asia has earmarked 42.78% of the proceeds to part finance the construction of the Perak Plant; 29.41% to part finance the purchase and commissioning of automated paint production system in Perak Plant; and 13.37% for the purchase of 250 sets of Smart Colour POS Tinting Machine. The remaining proceeds will be utilised for working capital and listing related expenses. The Perak Plant is scheduled to hold its grand opening on 9 May 2024. Upon commencement, the manufacturing capacity of Smart Asia is expected to increase by 309.99% from its current annual manufacturing for the FYE 2023.
In conjunction with the launch, the application period of Smart Asia’s IPO will commence today and closes on 13 May 2024 at 5:00 pm. Mercury Securities Sdn Bhd is the IPO’s Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent.
