Listing Detail:
Listing Sought: ACE Market
Issue Price: RM0.53

Dates:
Offer Period Open: 19 Aug 2019
Offer Period Close: 6 Sep 2019
Tentative listing date: 25 Sep 2019

Number of shares:
Public Issue: 136,323,500
Offer for Sale: 68,161,500
Private Placement: 156,397,300
 

Stock Code: MTAG

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") COMPRISING:

(I) PUBLIC ISSUE OF 136,323,500 NEW ORDINARY SHARES IN OUR COMPANY ("SHARES") IN THE FOLLOWING MANNER:

• 34,081,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;
• 14,006,700 NEW SHARES AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP;
• 68,161,500 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY; AND
• 20,074,300 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS; AND

(II) OFFER FOR SALE OF 68,161,500 EXISTING SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS

AT AN ISSUE/OFFER PRICE OF RM0.53 PER SHARE, PAYABLE IN FULL UPON APPLICATION

Company Overview

MTAG Group Berhad, an investment holding company, engages in the business of label and sticker printing, and customised converting services for various materials. The company was established in 1995 in Johor, Malaysia.

The subsidiaries of MTAG Group include Toyo Sho Industrial Products Sdn Bhd, Intag Industrial Supplies Sdn Bhd, and Intag Steel Hardware Sdn Bhd.
 

Address & Contact:

PLO 226, Jalan Kencana Mas,
Kawasan Perindustrian Tebrau III,
81100 Johor Bahru, Johor, Malaysia.

Tel: +607 351 3333
Website: https://mtaggroup.com/

News: MTAG Group to raise RM72.3m from IPO

KUALA LUMPUR: Printing and materials converting company MTAG Group Bhd plans to raise RM72.3m from its listing exercise where it is issuing 136.32 million new shares, or 20% of its enlarged share capital, at 53 sen each.

It said on Monday of the 136.32 million new shares, it was allocating 34.08 million shares to the public; 14 million shares to eligible directors and employees while 68.16 million shares to be placed out to approved Bumiputera investors and the remaining 20.07 million shares will be placed out.

The shareholders of MTAG are also placing out 68.16 million existing shares to selected investors, it said in a statement as it launched its prospectus. It is seeking to list on the ACE Market of Bursa Malaysia Securities Bhd.

MTAG group managing director Chaw Kam Shiang said the company would build a factory to increase its annual production capacity for labels and stickers progressively over the next few years.

“In terms of capability, we plan to introduce digital press printing in addition to our existing letterpress printing and thermal transfer printing to boost our service offering.

“The expansion plans that we have in place would enable us to accommodate the increasing demand from our existing customers and take on new business. This will, in turn, allow us to capture a larger market share, further cementing our position in the local label printing and converting industry and ultimately taking MTAG to the next level, ” Chaw added.

He said of the RM72.30mil to be raised from the IPO, RM33min or 45.6% would be used to purchase 10 acres to build a factory. The first phase would be comprise a built-up area of about 200, 000 square feet. Its current facilities have a built-up area of 83, 500 sf.

MTAG would also use RM13mil or 18.0% of the IPO proceeds to purchase machinery as it seeks to increase its annual production of labels and stickers to 636.8 million pieces from 324.5 million pieces now.

As for the remaining proceeds from IPO, it would use RM10mil to repay bank borrowings, RM12.5mil for working capital and RM3.8mil to defray listing expenses.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise. Johor-based MTAG core activities include printing of labels and stickers and customised converting services.

-- The Star