Autopart distributor MSB Global gets approval for ACE Market IPO

KUALA LUMPUR (Feb 21): Automotive parts distributor MSB Global Group Bhd said on Friday it has secured approval from Bursa Malaysia for an initial public offering (IPO) on the ACE Market.

The proposed IPO involves a public issue of 133 million new shares and an offer for sale of 74 million existing shares at a price to be fixed later, the Johor-based firm said in a statement. A timeline was not provided, though the company must complete the IPO within six months of approval.

“Receiving approval for our listing marks a significant milestone for MSB Global,” said managing director Datuk Ow Kee Foo. “This IPO opens new opportunities to drive innovation, strengthen our brand and accelerate our growth in the automotive aftermarket parts and components industry.”

MSB Global largely resells aftermarket automotive parts and components, such as driveshaft and fuel pump, which generates a little over two-thirds of its annual revenue. The rest comes from marketing and distribution of automotive lubricants and fluids, including engine oil.

The company is seeking funds to rebuild a factory that doubles up as a warehouse. Located in Ulu Tiram in Johor, the factory is expected to have an estimated built-up area of about 79,905 square feet on land owned by Ow, according to its draft prospectus filed in August 2024.

Proceeds from the sale of new shares will go towards the purchase of new machinery and equipment, and other expenses for the commissioning of its new blending, as well as fill-and-finish production lines for its automotive lubricants and fluids business.

The maximum capacity of finished products that can be produced from the new blending, as well as fill-and-finish production lines is 8.55 million litres per year.

Further, it is also budgeting some of the proceeds to buy and market its in-house branded electric vehicle (EV) chargers. “We target to launch our in-house branded EV charger” by the second quarter of 2025, MSB Global said in the draft prospectus.

The rest of the proceeds will be used to pare down the company’s borrowings and to defray listing expenses.

Gross proceeds from the offer for sale of existing shares, meanwhile, will accrue entirely to the selling shareholders Ow, executive director Lai Swee Ping, and Lee Li Lian, the wife of a director in one of its subsidiaries.

M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.