M&A Securities will underwrite for MTAG's IPO
Focus Malaysia 12 Jul 2019 14:02

Printing and materials converting specialist, MTAG Group Berhad (“MTAG” or the “Group”) (“丰山集团”), has entered into an underwriting agreement with M&A Securities Sdn. Bhd. (“M&A Securities”) in conjunction with the initial public offering (“IPO”) of MTAG on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Under the agreement, M&A Securities will underwrite new shares to be made available for the Malaysian public and its eligible directors, employees and persons who have contributed to the success of the Group.

At the signing underwriting ceremony, Group Managing Director of MTAG, Mr. Chaw Kam Shiang ( 周 锦 生 ) said “Following the signing of the underwriting agreement today, we are feeling increasingly excited as we are now one step closer to be a listed company on Bursa Securities. The listing status enhances the Group’s reputation and credibility, accord us greater recognition amongst our investors, stakeholders, existing as well as prospective customers.”

“Meanwhile, the IPO proceeds allow us to execute our expansion strategies, which involves acquiring land for the construction of a new manufacturing plant and investing in machineries to improve capacity and production efficiency. Other utilization of the proceeds from IPO include repayment of bank borrowings, working capital and defraying listing expenses.” Mr. Chaw further added.

The expansion shall further strengthen MTAG’s position, enabling it to capture the demand growth of the local label and printing industry, which is set to reach RM8.11 billion in 2023 from RM5.46 billion in 2018 according to an independent market report (“IMR”) by Protégé Associates.

MTAG specialises in printing of labels and stickers and customized converting services based in Johor. The Group has the capability to convert a wide range of materials such as adhesive tapes & papers, mesh, plastics, foams, and metals into predefined shapes and sizes. Besides, MTAG is also an authorized distributor for the renowned 3M and Henkel brands. The Group distributes a variety of industrial tapes and adhesive products. MTAG has more than 20 years of experience and is currently serving more than 600 customers from various industries such as electrical and electronics (“E&E”), automotive, precision tooling, mechanical & engineering, and construction.

MTAG is scheduled to be listed on the ACE Market of Bursa Securities by September 2019. The Group’s IPO exercise entails a public issue of 136.32 million new shares in the Group, representing 20% of the Group’s enlarged share capital. The existing shareholders of the company will also make an offer for sale of 68.16 million shares to selected investors by way of private placement.

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

DNeX bags contract worth RM42.75m from IRB

The purpose of the contract is to re-engineer tax self-assessment system.

MTAG records RM49.1 million revenue in 1QFY20

1QFY20 PBT reported at RM9.1 million or RM10.9 million on adjusted basis ex-listing expenses.