TSA Group Bhd (TSA), a distributor and supplier of ferrous and nonferrous metal and other industrial hardware products, as well as manufacturer and processor of stainless steel pipes and other metal products, has signed an underwriting agreement with AmInvestment Bank Bhd (AmInvestment Bank), for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

The IPO involves a public issue of 77.325 million new ordinary shares in TSA, representing 25 per cent of the group’s enlarged share base, of which 15.465 million ordinary shares are available for application by the Malaysian public, 15.465 million ordinary shares are available for application by eligible employees, 38.663 million ordinary shares are available by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), and 7.733 million shares are available by way of private placement to selected investors.

AmInvestment Bank will underwrite 30.930 million ordinary shares made available for application by the Malaysian public and eligible employees.

The execution of the underwriting agreement with AmInvestment Bank represents a significant milestone for the Group as it moves closer to becoming a publicly traded company in Malaysia.

Chew Kuan Fah, group managing director of TSA said, “We are excited with the listing on the ACE Market, which will enhance our visibility and reputation in the industry, and enable our stakeholders to participate in the growth and continued expansion of our business.

“With our strong track record in the trading of stainless steel and other metal products (30 years) as well as a manufacturer of stainless steel pipes (15 years), we are confident that our next phase of growth is a step towards value creation for our stakeholders.”

TSA Group Berhad is principally involved in the distribution and supply of ferrous and non-ferrous metal and other industrial hardware products, manufacturing and processing of stainless steel pipes and other metal products, with its main markets in Malaysia and Singapore.

“This corporate milestone will upscale our Group to new heights by strengthening our balance sheet, tapping into new opportunities and meeting the growing demand in the industry,” Chew added.

The proceeds from the IPO will be used for capital expenditure, working capital, repayment of bank borrowings and listing expenses.

AmInvestment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.