TOPMIX Bhd’s initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities has been oversubscribed by 58.61 times.

Topmix’s listing involves a public issuance 82.71 million new ordinary shares, representing 21% of its enlarged share capital, along with offering 19.69 million existing shares, constituting 5% of its enlarged share capital to selected investors through private placement.

At an IPO price of RM0.31 per share, the company is set to raise RM25.6 million.

Topmix has received a total of 12,438 applications for 1.17 million shares with a value of approximately RM363.9 million for the 19.69 million shares allocated to the Malaysian public, representing an overall oversubscription rate of 58.61 times.

For the Bumiputera portion, the oversubscription rate was 51.86 times, with 7,108 applications received for 520,482,700 shares.

In the other Malaysian public category, 5,330 applications were submitted for 653.4 million shares, resulting in an oversubscription rate of 65.36 times.

All 7.87 million shares available for application by eligible directors, employees, and contributors to the success of Topmix have been fully subscribed.

Additionally, the shares offered through private placement to selected Bumiputera investors, approved by the Ministry of Investment, Trade, and Industry, as well as the offer shares made available through private placement to selected investors, have also been fully placed out.

“Our growth strategy involves expanding into the assembly of melamine faced chipboard (MFC) products to increase our product range and reach new customer segments like furniture product manufacturers,” its MD Teo Quek Siang said in a statement today.

Additionally, he said, the company aims to enhance Topmix’s brand presence by establishing a sales office in Pulau Pinang, targeting business opportunities in the northern region of Peninsular Malaysia.

Topmix, Teo said, plans to expand its warehouse capacity in the central region to meet the increasing demand for surface decorative products, ensuring efficient order fulfilment.

Additionally, the company intends to enhance its marketing and sales efforts by strengthening its Topmix HPL mobile application with augmented reality technology and a 360 virtual tour of the showroom.

These initiatives aim to boost brand visibility and product awareness among the target audience.

Topmix is scheduled to be listed on April 23, 2024, with an estimated market capitalization of RM122.1 million.

M & A Securities is serving as the principal adviser, sponsor, underwriter, and placement agent for the — TMR