Tri-Mode System hopes to raise RM26m from IPO

PETALING JAYA: Logistics service provider Tri-Mode System (M) Bhd is looking to raise RM26.36 million through its initial public offering (IPO) at an issue price of 61 sen per share.

The company is scheduled to be listed on May 11 on the ACE Market of Bursa Malaysia.

Tri-Mode’s IPO involves a public issue of 43.21 million new shares comprising an institutional offering of 30.71 million shares and a retail offering of 12.5 million shares.

Of the retail offering, 8.3 million shares are available to the public, and 4.2 million to eligible persons. Applications for the retail portion will close at 5pm on April 26.

Upon listing, it will have a market capitalisation of RM101.26 million based on an enlarged issued share capital of 166 million shares.

Founded in 1992, Tri-Mode is engaged in the provision of sea freight, container haulage, air freight, freight forwarding, warehousing and marine insurance services.

About 58.8% of the IPO proceeds will be used for business expansion via the construction of a proposed headquarters and distribution hub and purchase of prime movers and trailers; 8.9% for working capital; 19% for the repayment of bank borrowings; and 13.3% to defray listing expenses.

Tri-Mode managing director Datuk Hew Han Seng said the listing exercise will provide the needed financial impetus for the group to pursue business expansion strategies and to establish market awareness of its brand within the logistics industry.

For the financial year ended Dec 31, 2017, it reported a net profit of RM6 million, a 28.5% rise from RM4.67 million a year ago.