Tri-Mode System seeks listing on ACE Market

PETALING JAYA: Freight and logistics services firm Tri-Mode System (M) Bhd is seeking to list on the ACE Market of Bursa Malaysia to fund the construction of its headquarters and distribution hub, among others.

In a draft exposure with the Securities Commission, the company said its initial public offering will entail an institutional offering of 35.69 million shares as well as retail offering of 7.52 million shares.

Founded on Nov 19, 1991, Tri-Mode’s principal activities include the provision of sea freight services, container haulage services, air freight services, freight forwarding services, warehousing services and marine insurance services.

Its customers mainly consist of local and multinational companies, and importers and exporters from various industries including textiles, insulation materials, paper products, gloves, building materials and many more.

Tri-Mode handled 29,647, 29,625 and 26,875 twenty-foot equivalent units of sea freight for 2014, 2015 and 2016, respectively.

Proceeds raised from the IPO will be used to fund the construction of its proposed headquarters and distribution hub, purchase of prime movers and trailers, repayment of bank borrowings and working capital.

Tri-Mode’s substantial shareholders are Datuk Hew Han Seng and and his wife Datin Sam Choi Lai.

Tri-Mode’s net profit fell 25.3% to RM4.22 million for the financial year ended Dec 31, 2017 against RM5.68 million a year ago. Its net profit margin dropped from 7.2% to 5.9%.