Proposed ACE to enhance Tri-Mode’s services
KOTA KINABALU: Tri-Mode System (M) Bhd (Tri-Mode), an integrated logistics service provider in Malaysia, successfully launched its prospectus yesterday in conjunction with the company’s proposedlistingontheACEMarket of Bursa Malaysia Securities Bhd (Bursa Securities).
Tri-Mode’s initial public offering (IPO) involved a public issue of 43.20 million new ordinary shares in conjunction with the listing of Tri-Mode on the ACE Market of Bursa Securities comprising institutional offering of 30.71 million issue shares and retail offering of 12.49 million issue shares.
The institutional offering of issue shares were to be allocated in the manner of 24.9 million issue shares available by way of private placement to institutional and selected investors and 5.81 million issue shares available by way of placement to Bumiputera investors approved by the Ministry of International Trade and Industry.
As for the retail offering of issue shares, these were to be allocated in the manner of 8.3 million issue shares available for application by the public and 4,197,000 issue shares available for application by the eligible persons as defined in the company’s prospectus.
These were all subject to clawback and reallocation provisions, the final retail price will be equivalent to the lower of the retail price or institutional price.
“Becoming a listed entity will be a significant milestone for Tri-Mode as it will create greater opportunities for us to enhance the company’s business, providing us with the needed financial impetus to pursue our business expansion strategies as well as to establish market awareness of our brand within the logistics industry.
“We are excited to embark on this new phase as a publicly listed company whilst staying mindful of the responsibilities we hold towards our stakeholders,” Tri-Mode non-Independent group managing director Dato’ Hew Han Seng expressed at the ceremony.
Tri-Mode, through its subsidiaries, is principally engaged in the provision of sea freight services, container haulage services, air freight services, freight forwarding services, warehousing services and marine insurance services primarily at the major transportation gateways throughout Peninsular Malaysia, namely Port Klang, Penang Port, Pasir Gudang Port, Port of Tanjung Pelepas, Kuala Lumpur International Airport (KLIA), and Penang International Airport.
The company’s customers mainly consist of local and multinational companies, and importers and exporters from various industries, which include, textiles, insulation materials, paper and plastic products, gloves, building materials, automotive parts, packaging materials, rubber products, furniture, home and electronic appliances, chemical products and edible oils.
Through its IPO, Tri-Mode aims to raise total gross proceeds of RM26.36 million, of which approximately 58.8 per cent of the proceeds will be allocated for its business expansion via the construction of a proposed headquarters and distribution hub and purchase of prime movers and trailers, and approximately 8.9 per cent of the proceeds will be allocated for working capital.
A further 19 per cent of the proceeds will be allocated for the repayment of bank borrowings, and the balance of approximately 13.3 per cent of the proceeds will be allocated to defray estimated listing expenses.