MSB Global Group Berhad ("MSB Global" or the "Group"),a leading player in Malaysia's aftermarket automotive parts and component industry, has announced the launch of its prospectus for the Initial Public Offering (“IPO”) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). This marks a significant milestone in the Company’s corporate journey, reinforcing its commitment to advancing Malaysia’s aftermarket automotive parts and components industry.
MSB Global is the exclusive distributor of GSP-branded automotive parts and components in Malaysia, supplying a comprehensive range of high-quality aftermarket products. These include driveshafts, wheel hub assemblies, suspension parts, steering racks, and more, ensuring durability and reliability for customers.
At the same time, the Group has expanded its footprint in the automotive lubricants and fluids segment through its in-house brands, FK FUKUOKA and ZR.ZURIC, offering engine oil, automotive transmission fluid, gear oil, brake fluid, and other essential automotive fluids to meet the diverse needs of the market.
The IPO seeks to raise RM26.60 million through the issuance of 133.00 million new ordinary shares at a retail price of RM0.20 per share.
The proceeds from the IPO will be allocated as follows:
* RM4.97 million for the reconstruction of a new factory and warehouse to support lubricants and fluids production.
* RM6.00 million for the purchase of machinery, equipment, and raw materials to establish blending and fill-and-finish production lines.
* RM0.84 million to support the launch and distribution of the Group’s in-house branded electric vehicle (“EV”) chargers.
* RM5.50 million for repayment of bank borrowings.
* RM4.79 million for general working capital.
* RM4.50 million for listing expenses.
Datuk Ow Kee Foo, Managing Director of MSB Global, commented, “The launch of our prospectus marks an important chapter for MSB Global. This IPO will allow us to solidify our position in the automotive aftermarket industry while enabling us to diversify and grow our product portfolio. From lubricant production to EV chargers, the funds raised will support our vision of delivering innovative and high-quality solutions to our customers. We remain committed to creating long-term value for our shareholders and contributing to the growth of Malaysia’s automotive sector.”
Datuk Bill Tan, Managing Director (Corporate Finance) and Executive Director of M & A Securities, added, “We are honoured to be part of MSB Global’s IPO journey. With its strong market presence, established brands and forward-looking strategies, the Group is well-positioned to seize growth opportunities in the automotive aftermarket parts and components industry. This IPO marks a strategic milestone that will further enhance MSB Global’s operations and competitiveness”
The automotive aftermarket parts and components industry in Malaysia has experienced steady expansion, driven by a rising vehicle population and increasing consumer demand for reliable spare parts and high-performance lubricants. According to the Independent Market Research (“IMR”) report, Malaysia’s wholesale and retail sales of automotive parts and components grew by 17.3% in 2023, reaching RM54.39 billion. The sector is projected to expand at a CAGR of 9.0%, surpassing RM83.62 billion by 2028. With a strong foundation in the industry and a well-established distribution network, MSB Global is poised to leverage this growth by enhancing its product offerings and strengthening its market position in the automotive lubricants and fluids segment.
M & A Securities Sdn Bhd. is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for this IPO.
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