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KUALA LUMPUR: Integrated Facilities Management service provider GFM Services Bhd’s (GSB) wholly-owned subsidiary, Highbase Strategic Sdn Bhd (HSSB) and its joint venture partner, Singapore-Exchange listed Mun Siong Engineering Ltd (MSE), has secured three letters of appointments (LoA) from Petroliam Nasional Bhd (Petronas) operating companies (OPCs). The contract is to deliver operations and maintenance (O&M) services for three facilities within the Pengerang Integrated Complex (PIC) in Johor. These new contracts expand HSSB and MSE’s existing integrated turnaround main mechanical and maintenance mechanical static (TA4MS) contract to provide plant turnaround services to three facilities operated by the Petronas operating companies, namely, PRPC Utilities and Facilities Sdn Bhd, Pengerang Power Sdn Bhd and PRPC Water Sdn Bhd, respectively. The LoAs are for three years, from March 15, 2024, to March 14, 2027, with an option to extend for an additional two years. GSB managing director Ruslan Nordin said these LoAs underscore the company’s proven ability to deliver value and ensure the seamless operations of critical assets within the PIC. “These contract wins are a testament to HSSB’s growing reputation as a reliable partner. We are committed to optimising facility performance and maximising long-term operational efficiencies. “This strategic expansion of collaborative effort reinforces our partnership with Petronas and boosts the TA4MS outstanding contract value to GSB. “This is expected to contribute positively to GFM’s overall profitability and will further solidify our market position in the O&G sector, positioning GSB for sustained growth,” he said in a statement. In addition to maintaining the OPC’s facilities, HSSB and MSE are currently maintaining the facilities of Pengerang Refining Company Sdn Bhd, Pengerang Petrochemical Company Sdn Bhd and Petronas Chemical Isononanol Sdn Bhd. This brings both companies’ maintenance portfolio to a total of six facilities within the PIC, Johor.

KUALA LUMPUR: The Securities Commission (SC) has issued the revised Guidelines on Conduct for Capital Market Intermediaries (Guidelines), aimed at elevating standards of professionalism and integrity of capital market intermediaries (CMIs) in the industry. The revised guidelines, among others, reinforce the role of a CMI’s board and senior management in inculcating a corporate culture where clients’ interests are prioritised. The guidelines also clarify the SC’s expectations regarding CMIs’ duty to act honestly and fairly and avoid misleading and deceiving their clients under any circumstances. SC, in a statement, said the new chapters are introduced to address crucial areas, such as the treatment of vulnerable clients, as well as providing personal advice and capital market-related services, including through online platforms. SC chairman Datuk Seri Dr Awang Adek Hussin said the revised guidelines  signify the SC’s efforts towards fostering trust, integrity and client-centricity in the capital market industry by, amongst others, minimising the risk of mis-selling, avoiding reputational damage, reducing complaints and improving client retention. “Fairness is a cornerstone principle, requiring CMIs to consider the client’s circumstances, including any vulnerabilities that the client may have, communicate clearly and ensure comprehension of product details and associated risks,” he said. “When providing personal advice to a client, a CMI must exercise care, skill and diligence and give due regard to the client’s interests. “We are confident that these  enhancements will elevate standards and reinforce investor confidence in our capital market,” he said. In revising the guidelines, the SC has considered feedback from engagements with, among others, Bank Negara Malaysia, the Federation of Investment Managers Malaysia and relevant capital market intermediaries. The revised guidelines will come into effect on October 1, 2024 to allow sufficient time for capital market intermediaries to familiarise and prepare to meet the new requirements of the revised guidelines.

KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd (MOP) plans to expand its plantation in East Kalimantan after listing on the main market of Bursa Malaysia. The oil palm plantation player is raising RM136.4 million from its initial public offering (IPO) and allocating RM42.0 million, or 30.8 per cent of the proceeds, for the land acquisition. The additional land is close to the company’s current oil palm plantation estates in Kutai Kartanegara, East Kalimantan. According to the company’s prospectus, which was launched on Friday, MOP has identified companies) with potential land banks for oil palm plantation in the sub-district of Muara Kaman, Kutai Kartanegara, East Kalimantan, with an estimated land area of approximately 5,000.0ha with an estimated area for planting of 4,000.0 to 4,500.0ha. Non-independent non-executive chairman Tan Sri Datuk Chen Kooi Chiew said the IPO proceeds will accelerate growth plans, which include expanding the company’s plantation landbank by acquiring lands located near existing estates to leverage existing processing and jetty facilities. “We will also invest in new machinery and equipment to enhance operational efficiency, increase processing capabilities, and broaden our product offerings,” he said in a statement. Apart from the allocation for the land acquisition, MOP plans to use RM9.0 million, or 6.6 per cent, to set up a palm kernel (PK) crushing facility to generate an additional income stream. RM42.0 million, or 30.8 per cent of the amount raised, will be used for capital expenditures on existing plantation lands, refurbishment and upkeep of the existing palm oil mill, refurbishment and construction of workers and staff housing quarters, and expansion of the electricity supply. Further, RM30.0 million, or 22.0 per cent, of the IPO proceeds will go towards loan repayment, and RM13.4 million, or 9.8 per cent, will be deployed as working capital and listing expenses. According to the prospectus, MOP has oil palm plantations with a maturity and topographical profile that result in high fresh fruit brunche (FFB) yields. As of the latest practicable date (LPD), MOP prime mature oil palms are between 10 and 16 years old, making up approximately 94.9 per cent of the company’s total planted area. As a result of the ideal age profile of MOP’s oil palms, whereby the majority of them are in the early or midyears of the prime mature stage, as well as the topographical profile of its plantation estates, MOP achieved average FFB yields of 29.3mt per ha, 26.7mt per ha, 23.2mt per ha and 24.1mt per ha for FY20 to FY23, respectively. MPO’s IPO exercise comprises a public issue of 220.0 million shares, or 21.5 per cent of share capital, and a private placement of 30.7 million shares, or 3.0 per cent of the enlarged shares, to selected investors. Of the 220.00 million shares, 51.21 million will be made available for application to the Malaysian public via balloting, while the remaining 168.79 million new shares are reserved for private placement to selected investors. With an enlarged issued share capital of 1.02 billion shares and an IPO price of RM0.62 per share, MOP will have a market capitalisation of RM634.6 million upon listing. In terms of dividend policy, MOP intends to recommend and distribute a dividend of at least 50 per cent of its annual net profit. The company is targeted to be listed on the main market of Bursa Malaysia on April 30, 2024.  

KUALA LUMPUR: ACE-market-bound surface decorative products company Topmix Bhd does not anticipate any hike in raw material prices this year as the company has strategic plans to mitigate any fluctuations. Managing director Teo Quek Siang said the company handles the raw materials for its products through its original equipment manufacturer (OEM), and it will only take finished products for customisation to cater to customers from diverse industries. “We do not anticipate any hike on our raw material prices in the medium term as we take all our products from our OEMs. “We expect prices to sustain for the term as we continue to cater our products to diverse industries in Malaysia,” he told reporters at the company’s prospectus launch. According to the prospectus, Topmix OEM suppliers are Zhejiang Rexin Decorative Material Co Ltd and Melatone Group through their Malaysian subsidiaries. Topmix purchases from Zhejiang Rexin and Melatone Group accounted for 75.52 per cent to 81.81 per cent of its total purchases for the financial years 2020, 2021, 2022 and the financial year ended 2023. Topmix markets a wide range of own-brand surface decorative products, including high-pressure laminate (HPL), compact panels, wall panels, PVC edging, decorative boards and PVC plywood used in various commercial and residential interior surface applications. Its customer base spans local hardware product dealers, stockists, interior designers, contractors of residential and commercial properties, and carpenters. “Demand for surface decorative products is growing in popularity as they are durable, cost-effective, have a long shelf life, and enhance the aesthetic appeal of interior spaces. “Our upcoming initial public offering (IPO) will enable us to accelerate our expansion plans and further strengthen our market presence in the industry,” Teo said. Topmix is raising RM25.6 million under its IPO, with RM11.3 million (44.2 per cent) earmarked for general working capital while RM6.0 million (23.3 per cent) is allocated towards business expansion, marketing and sales, including establishing a new sales office and expanding warehouse capacity. The company also plans to allocate RM5.3 million (20.8 per cent) to expand into melamine-faced chipboard (MFC) product assembly. The remaining RM3.0 million (11.7 per cent) will be allocated to defray listing expenses. According to the prospectus, Topmix plans to expand in Malaysia to capture business opportunities in Penang and tap and market its surface decorative solutions by establishing a sales office, including a showroom and warehouse. Topmix intends to utilise RM3.08 million from the IPO proceeds to fund to setup the sales office in Penang, which will include the cost of setting up the sales office including showroom and warehouse (RM1.90 million), purchase of motor vehicles (RM0.34 million) and office equipment (RM0.07 million) and manpower requirement for 12 months (RM0.77 million). “This allows us to maintain a larger inventory, ensuring timely and cost-efficient order fulfilment for our customers,” Teo said. Topmix expects the demand for surface decorative products will grow due to recovery in the property markets, increased foreign and domestic investments, population growth and urbanisation, higher income levels and supportive government initiatives to encourage home ownership. “To capitalise on this trend, we will intensify our marketing and sales activities and strengthen our Topmix HPL mobile application with features such as augmented reality technology and a 360-degree virtual tour of our showroom to increase brand and product awareness,” Teo said. Topmix’s IPO exercise encompasses a public issuance of 82.7 million new ordinary shares, representing 21.0 per cent of its enlarged share capital, an offer for sale of 19.7 million existing shares, or 5.0 per cent of its enlarged share capital by way of private placement to selected investors. Out of the 82.7 million new shares, 19.7 million shares will be made available to the Malaysian public via balloting, 7.9 million shares to its eligible directors, employees and persons who have contributed to the success of Topmix, while the remaining 55.1 million shares are reserved to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and selected investors via private placement. Based on the IPO price of RM0.31 per share and its enlarged issued shares of 393.9 million, Topmix’s market capitalisation upon listing is approximately RM122.1 million. On earnings, Topmix’s revenue rose from RM27.5 million in FY20 to RM65.8 million in FY22 ended December 31, 2022, representing a two-year compound annual growth rate (CAGR) of 54.7 per cent. Concurrently, net profit surged from RM2.4 million in FY20 to RM8.5 million in FY22, signifying a two-year CAGR of 88.2 per cent. For FY23, Topmix reported a revenue and net profit of RM51.0 million and RM5.6 million, respectively. HPL products segment accounted for 94.1 per cent of the company’s revenue in FY23, while the remaining 5.9 per cent is attributed to the other surface decorative products segment and kitchen and wardrobe accessories segment. The company will be listed on the ACE Market of Bursa Malaysia on April 23, 2024. M&A Securities is the IPO exercise’s principal adviser, sponsor, underwriter, and placement agent.