KUALA LUMPUR: Inorganic chemicals manufacturer TMK Chemical Bhd made its debut on the Main Market of Bursa Malaysia at RM1.97 per share, up 12.6% from its initial public offering (IPO) price of RM1.75, with 5.95 million shares traded.
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The listing marks the 50th IPO on the local bourse year-to-date, and 11th on the Main Market.
The company’s IPO raised RM385mil, to fund strategic plans to expand production capacity and explore new market opportunities.
About RM90.2mil or 23.4% of its IPO proceeds will be invested in constructing a new manufacturing facility that will double the company’s annual production capacity to 352,254 tonnes of chlor-alkali derivatives by 2026.
Another RM49.5mil will be used to establish a new processing facility in Singapore, as the current facilities there are at full operational capacity.
TMK has also earmarked RM99.1mil or 25.7% of the proceeds for potential investments in inorganic chemicals or related industries, though specific targets are yet to be identified.
Additionally, the group will use RM79.4mil of the IPO proceeds for working capital and RM50mil to pare down borrowings, with the remainder covering IPO-related expenses.
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Established in 1989, TMK Chemicals has 35 years of experience in total chemicals management, specialising in inorganic chemicals.
The group operates 15 facilities, two terminals, and a manufacturing plant to meet growing regional and international demand.
Its products serve diverse industries, from healthcare and construction to automotive and consumer goods, including items as varied as shampoos and car batteries.
TMK currently exports to 26 countries, primarily in the Asia-Pacific region, with a 25% market share in Malaysia and 24% in Singapore.
Earlier this week, TMK Chemical announced a net profit of RM29.16mil in the quarter ended Sept 30, 2024 (3Q24) on the back of revenue of RM348.17mil.
Over the cumulative nine months period to Sept 30, 2024, TMK Chemical registered a net profit of RM89.03mil on revenue of RM1.01bil.
There are no comparative figures as this was its first interim financial report announced.
-TheStar