KUALA LUMPUR: Oil and gas specialty chemicals manufacturer SumiSaujana Group Bhd aims to raise RM74.4 million from its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities..
The IPO involves the issuance of 310 million new shares at an issue price of 24 sen per share.
Of the proceeds, RM40.2 million (54%) is allocated for the acquisition of a new warehouse and a new corporate office in Puncak Alam to consolidate its warehousing and operational facilities while RM18.9 million (25.4%) is for the acquisition of its existing Puncak Alam factory to support operational sustainability.
A sum of RM2.1 million (2.8%) is allocated for enhancing facilities, RM7.6 million (10.3%) for expansion of the group’s research and development division and RM5.6 million (7.5%) for listing expenses.
CEO Norazlam Norbi said since its establishment, SumiSaujana has expanded its capabilities and strengthened its position as a solutions provider for the oil and gas industry.
“With the funds raised, we will focus on expanding our production capacity, strengthening our global footprint, and reinforcing our commitment to delivering value to all our stakeholders,” he said during the IPO prospectus launch today.
He added that the company is embarking into the specialty oleochemicals and fine chemicals for industrial use including sustainable lubricants and polyols.
“We are already embarking on this new work for the last two years and we hope to see some fruition very soon on this. That, we think, will actually help further grow the company in the near and long term.”
Norazlam said the palm oil sector in Malaysia has growth potential in high-end specialty oleochemicals.
“This is the palm oil sector. There’s not enough being done to go deeper and promote the high-end specialty oleochem market. And we hope we will be able to serve that in the near future.”
However, he said its thrust will always remain in the oil and gas industry, regardless of the stream. “We are looking at a balanced approach. However, looking ahead, we see significant potential in the specialty industrial chemicals sector.”
More than 70% of SumiSaujana’s revenue comes from international markets, including the Asia-Pacific, Middle East, Africa, Europe and the Americas. Roughly 30% comes from Malaysia, with customers including Petroliam Nasional Bhd and a UK-based oil company.
As part of the IPO, an offer for sale of up to 90 million shares, representing 6.23% of the enlarged share capital, will be made available via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Applications for the IPO opened today following the prospectus launch and will close on March 25. SumiSaujana is expected to debut on the ACE Market on April 9. At an IPO price of RM0.24 per share, the company’s market capitalisation upon listing will be about RM346.5 million.
RHB Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for SumiSaujana’s IPO.
