KUALA LUMPUR (March 27): Total surface decorative products company Topmix Bhd began taking orders from investors on Wednesday for its initial public offering (IPO) on the ACE Market that would raise up to RM25.6 million.

The IPO, which is priced at 31 sen apiece, comprises a public issuance of 82.7 million new ordinary shares, which represents 21% of the enlarged share capital, as well as an offer for sale of 19.7 million existing shares, which represents 5% of the enlarged share capital, by way of private placement to selected investors.

Out of the 82.7 million new shares, the company allocated 19.7 million shares to the public, 7.9 million shares to eligible persons and 55.1 million shares to Bumiputera and select investors through private placement.

Applications for the IPO will close on April 4, while the listing is set for April 23.

The company sees a pricing-earning ratio of 14.3 times, based on its net profit of RM8.5 million for the financial year ended Dec 31, 2022 (FY2022).

For the financial period ended Sept 30, 2023 (9MFY2023), the group reported a net profit of RM5.6 million, on the back of RM51 million.

According to its statement on Wednesday, the company plans to use 44.2% of its proceeds, or RM11.3 million, for general working capital and 23.3%, or RM6 million, for business expansion.

It will also allocate 20.8% of its proceeds, or RM5.3 million, to expand into the assembly of melamine-faced chipboard products. The remaining RM3 million, or 11.7%, will be used to defray listing expenses.

M&A Securities serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.