ACE MARKET-BOUND SUMISAUJANA AIMS TO RAISE RM74.4 MLN FROM IPO

KUALA LUMPUR, March 13 (Bernama) -- ACE Market-bound oil and gas (O&G) specialty chemicals manufacturer SumiSaujana Group Bhd aims to raise RM74.4 million from its initial public offering (IPO).

The company’s IPO entails the issuance of 310.0 million new shares at an issue price of 24 sen per share.

Of the total proceeds, 54 per cent (RM40.2 million) will be used to acquire a new warehouse and corporate office in Puncak Alam, 25.4 per cent (RM18.9 million) to purchase its existing factory in Puncak Alam, 10.3 per cent (RM7.6 million) for reseach and development expansion, 2.8 per cent (RM2.1 million) for capital expenditure, and 7.5 per cent (RM5.6 million) for listing expenses.

SumiSaujana executive director and chief executive officer Norazlam Norbi said the proceeds raised would enhance operations, support larger-scale production, and strengthen the company’s presence in key markets.

“Our presence extends beyond Malaysia, and we have successfully positioned ourselves in key international markets, with over 70 per cent of our revenue coming from overseas.

“As the energy and sustainable specialty chemicals sector continues to evolve, we remain focused on staying ahead of industry trends and ensuring that our offerings align with the growing demand for advanced specialty chemicals,” he said during the launch of the company’s IPO prospectus here, today.

Meanwhile, at a press conference after the launch, Norazlam said the company is expanding into specialty oleochemicals.

“90 per cent of our manufacturing operations are in the O&G industry, a sector that will continue to grow. However, we believe that venturing into specialty oleochemicals will drive further growth for the company in both the short and long term,” he said. 

Specialty oleochemicals are high-value chemical products derived from natural oils and fats like palm oil, soybean oil, and canola oil, for use across industries such as personal care, pharmaceuticals, lubricants, and industrial applications.

Norazlam also noted that there has been a lack of sufficient efforts to develop and promote the high-end specialty oleochemicals market.

”So, we aim to contribute to this market in the near future while maintaining a balanced approach. Our core focus will remain on the O&G industry across all sectors, even as we expand into industrial chemicals,” he said. 

Applications for the public issue are open from today and will close on March 25, 2025. The company’s listing is scheduled for April 9, 2025.

RHB Investment Bank is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO exercise.

-- BERNAMA