TSA debuts on ACE Market, embarks on expansion with new stainless steel cold rolling line
LUMPUR: Stainless steel products supplier TSA Group Berhad (TSA) has made a triumphant debut on the ACE Market of Bursa Malaysia yesterday.
The group’s shares opened at RM0.58 - a premium of around 5.6 per cent from its issue price of RM0.55.
TSA, which serves over 3,000 customers in 12 countries globally, has also witnessed strong investor response to its initial public offering (IPO), which was oversubscribed by 8.62 times and successfully raised RM42.53 million in proceeds.
Following the listing ceremony, Chew Kuan Fah, Group Managing Director of TSA said, “I extend my heartfelt gratitude to all our shareholders for their unwavering support and confidence in our vision and growth strategy.
“Your commitment has been instrumental in making this listing a resounding success.”
About RM5.1 million or 12 per cent of the IPO proceeds will be utilised to part finance the construction of TSA’s RM52 million plant in Semenyih, which is expected to manufacture 48,000 tonnes of cold-rolled stainless-steel coils per year.
“This initiative is a significant leap for TSA, as this strategic move aligns with our ongoing efforts to strengthen our market position, bolster revenue growth, and offer more customised solutions to our clients,” added Chew.
The new production facility is slated to commence operations in the third quarter of 2026 and will have a monthly production capacity of 4,000 tonnes of cold-rolled stainless-steel coils. “This represents a new business avenue for the company,” Chew added.
The construction work for the Semenyih plant is expected to begin in the third quarter of 2024.
Since its inception in 1993, TSA Group Berhad has solidified its market presence, cultivated a large and diverse customer base, offering a diverse portfolio.
Establishing our new cold steel stainless steel rolling line aligns with our dedication to quality and customer satisfaction.
AmInvestment Bank Berhad is the IPO’s principal adviser, sponsor, placement agent and underwriter.