DS SIGMA Holdings Bhd, a packaging products provider, has signed an underwriting agreement with Public Investment Bank Bhd in respect of the company’s IPO, in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Bhd. DS Sigma is scheduled to be listed in the first quarter of 2023.

DS Sigma’s upcoming IPO comprises a public issue of 91.18 million new ordinary shares and an offer for sale of 38.42 million existing shares.

Of the 91.18 million new shares, 24 million shares will be made available for application by the Malaysian public, 9.8 million shares for eligible directors, employees of the company and its subsidiaries (group) and other persons who have contributed to the success of the group, while 35.8 million shares will be made available for application by way of private placement to selected investors and the remaining 21.58 million shares will be made available by way of private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

As for the offer of sale portion, all 38.42 million shares will be allocated by way of private placement to selected Bumiputera investors approved by MITI.

Pursuant to the underwriting agreement, Public Investment Bank will underwrite a total of 33.8 million shares made available for the Malaysian public; the group’s directors and eligible employees; and other persons who have contributed to the success of the group.

Public Investment Bank, besides being the sole underwriter of DS Sigma’s IPO, is also the principal adviser, sponsor and sole placement agent for this exercise.

DS Sigma MD Lucille Teoh said the signing of the underwriting agreement today will kickstart the company’s journey towards being a listed entity.

“We believe that this listing exercise will enhance DS Sigma’s profile and allow us to tap into the capital market which will help to accelerate our growth as we look to capture new markets and grow our presence in existing ones.

“We aim to expand our business into new targeted markets where we plan to increase our customer base by focusing on the solar photovoltaic and medical devices industry. In addition, we will be increasing our capacity through establishing an additional factory in Klang, Selangor, as well as new business operations in Penang,” she said.

“I truly believe in our ability to accomplish what we have built over the past 20 years, the experience that DS Sigma has garnered will prove to be instrumental in our business sustainability and growth. Our strategic plans will be rolled out by our experienced management team with over 30 years of experience in the packaging industry.

“We are immensely thankful to Public Investment Bank for its confidence and support and playing a key role in our IPO exercise,” she says.

Meanwhile, Public Investment Bank CEO Lee Yo-Hunn said, “As we are now in an endemic phase and seeking to return to pre-pandemic normality, forward thinking companies, such as DS Sigma, have already started re-positioning and strategising for the future.

“We are confident that this listing exercise will serve as a platform for the group to launch the next phase of its business expansion and growth plans. We believe that this, combined with the experience of its team led by Teoh, coupled with its long and established track record in the packaging industry, will be the key drivers to propel the company upwards and forward.”

Barring any unforeseen circumstances, the company is expected to launch its prospectus by the middle of December 2022. — TMR