MSB Global Group Berhad (“MSB Global” or the “Group“), a leading player in Malaysia’s aftermarket automotive spare parts industry, has officially signed an underwriting agreement with M & A Securities Sdn Bhd (“M & A Securities“) in preparation for its upcoming Initial Public Offering (“IPO“) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities“).
MSB Global is the exclusive distributor of GSP-branded automotive parts and components in Malaysia, where the Group supplies a wide range of high-quality aftermarket automotive parts and components, including driveshafts, wheel hub assemblies, suspension parts, steering racks, and more, ensuring customers receive durable and reliable solutions. Simultaneously, the Group has strengthened its presence in the automotive lubricants and fluids segment through its in-house brands, FK Fukuoka and ZR-Zuric, which encompass engine oil, automotive transmission fluid, gear oil, brake fluid, and other automotive fluids.
Based on the exposed prospectus published on Bursa Securities website, MSB Global’s IPO involves the issuance of 133.00 million new shares, representing 21.80% of the Group’s enlarged issued share capital of 610.00 million shares, alongside an offer for sale of 74.00 million existing shares, which accounts for 12.13% of the enlarged issued share capital.
The allocation of IPO shares is structured as follows:
Public Issue
· Malaysian Public:
o 30.50 million shares or 5.00% of the Group’s enlarged issued share capital, with 2.50% made available to public investors and the remaining 2.50% are made available to Bumiputera public investors.
· Eligible Persons:
o 6.10 million shares or 1.00% of the enlarged issued share capital will be allocated to eligible directors, key senior management and employees through Pink Form Allocations.
· Private Placement to Bumiputera Investors:
o 76.25 million shares or 12.50% of the enlarged issued share capital are reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, Malaysia (“MITI“).
· Private Placement to Selected Investors:
o 20.15 million shares or 3.30% of the enlarged issued share capital are reserved for private placement to selected investors.
Offer for sale
· Offer for sale of 74.00 million shares or 12.13% of the enlarged issued share capital by way of private placement to selected investors.
Under the underwriting agreement, M & A Securities will underwrite 36.60 million shares, comprising those allocated to the Malaysian public and eligible persons via Pink Form Allocations. The remaining 170.40 million shares will be placed to selected investors.
Datuk Ow Kee Foo, Managing Director of MSB Global, remarked, “The signing of this underwriting agreement represents a key milestone as we advance towards our listing. We appreciate M & A’s dedication and support throughout this process. This IPO will enable us to expand our operations and enhance our capabilities, particularly with the establishment of our own automotive lubricant blending plant. This expansion from a trading business into manufacturing will enhance our brand image and strengthen our market competitiveness. Additionally, owning a manufacturing plant will offer greater flexibility for product customisation and innovation. We are excited to leverage our strong market position to seize emerging opportunities in Malaysia and the region.”
Datuk Bill Tan, Managing Director (Corporate Finance) and Executive Director of M & A Securities, added, “We are proud to support MSB Global in its journey to becoming a public-listed company. With a solid reputation, an established distribution network, and a dedicated management team, the Group is well-equipped to capitalise on the evolving automotive aftermarket industry. This IPO marks the beginning of a promising new chapter for MSB Global and its stakeholders.”
According to the exposed prospectus, a report by the independent market research firm Protégé Associates Sdn Bhd states that Malaysia’s automotive lubricants and fluids market remains a key segment within the automotive industry, driven by the increasing number of vehicles on the road and ongoing maintenance demand. As of October 2023, Malaysia recorded 36.3 million registered vehicles, with over 700,000 new registrations annually since 2022. This trend fuels demand for aftermarket automotive parts and lubricants, ensuring steady market expansion. The automotive lubricants and fluids market in Malaysia is projected to reach RM3.65 billion in 2025 and grow at a compound annual growth rate of 9.2% to reach RM5.17 billion in 2029. This growth is supported by rising vehicle ownership, the expansion of commercial transportation, and the need for high-performance lubricants to improve vehicle efficiency.
MSB Global’s comprehensive product offerings, extensive distribution network, and commitment to quality have established it as a reliable partner in the automotive industry. With the anticipated listing on the ACE Market, the Group is poised to capture greater market share, strengthen its leadership in the lubricants and fluids segment, and expand its portfolio with new product categories, including in-house branded electric vehicle (“EV”) chargers. These initiatives align with the Group’s vision of sustainable innovation and long-term growth, positioning it at the forefront of the evolving automotive aftermarket industry.
