ACE Market-bound freight forwarding and aerospace logistics provider AGX Bhd has set its initial public offering (IPO) price at 35 sen per share, and remains confident of logistics service industry outlook in 2024 amid rising geopolitical tensions as it intends to adopt a cost-plus pricing strategy.

Its IPO price of 35 sen per share would translate to a market capitalisation of RM151.5 million upon the company's listing on Bursa Securities with an enlarged share capital of 432.87 million shares.

At its IPO price, the group is valued at about 11 times its price-earnings ratio based on a net profit of RM13.54 million for FY2022.

The group’s IPO comprises a public issuance of 96.5 million new shares and an offer for sale of 30 million existing shares. It expects to raise RM44.26 million, of which RM33.78 million will be from the issuance of new shares and RM10.5 million from the offer for sale shares. It is set to be listed on Feb 7.

Under the public issue portion, 21.65 million shares will be made available to the Malaysian public through balloting, of which 50% or 10.83 million shares will be set aside for Bumiputera investors. Some 6.32 million shares will be allocated to eligible directors and employees of the group.

The remaining 68.53 million shares will be made available for private placement to selected investors.

The majority of proceeds of RM16.44 million will be used for working capital and RM8.7 million for business expansion in Malaysia and South Korea by setting up new warehouses and offices in Penang and Johor Bahru, as well as a new office in Busan, South Korea. The remaining proceeds of RM4.14 million and RM4.5 million will be utilised for repayment of bank borrowings and listing expenses respectively.

At the prospectus launch on Tuesday, AGX Bhd explained its cost-plus pricing strategy.

“Our business is mainly cost-plus, so whenever the rates go up, we will still have our margin. Definitely, this Red Sea [crisis] will have an impact on the importers and exporters because the rates are definitely going up, and the shortage will be there, especially container turnaround time and shortage of containers. This will definitely happen, and also longer transit,” said AGX Group CEO Datuk Ponnudorai Periasamy.

In 2022, AGX generated RM234.43 million in revenue, of which 54% came from sea freight forwarding services (RM126.58 million), 27% from air freight forwarding services (RM63.65 million), and 13% from aerospace logistics (RM29.68 million).

The company has a physical presence in five countries with its customer portfolio comprising the likes of AirAsia, Batik Air, Malaysia Airlines and several other maintenance, repair and overhaul (MRO) companies in the Philippines.

AGX has adopted a dividend policy with a payout ratio of up to 30% of its profits attributable to owners of the company, subject to the approval by the board of directors of AGX Bhd at each of the financial year.

Opening of application - 16 Jan 2024

Closing of application - 23 Jan 2024

Balloting of application - 26 Jan 2024

Allotment of IPO shares to successful applicants - 05 Feb 2024

Tentative listing date - 07 Feb 2024

This post has been edited by nexona88: Jan 16 2024, 03:52 PM

a dull & PRICEY logistic ipo..?

This post has been edited by IPO ADDICT: Jan 18 2024, 10:11 AM

Why you said pricey?

The price is not expensive...i will apply some..try luck

Any TP to share? I don't see anywhere

Reference number

xxxx117954

22.1.24 ..2.50pm

Mercury give RM0.57

#tayor

okay lah.
got meat sikit

mcm like have 7k application only

Warren BUFFETT >>

BE GREEEEEDY $$$$$ when others are SHIVERINGGG

no people apply this ipo? haha

secretly /queitly applying ? :

seems they don't bother / don't trust that FANTASTIC TP by Mercury ....this is a worrying trend

This post has been edited by IPO ADDICT: Jan 23 2024, 10:54 AM

Still early.
Wait after 2pm 😁

Quietly applying

No miti
Ciput public allocation
Good and increasing revenue
Share not that big
20% discounted share
Semicon support business

Cny angpow 🔥🔥🔥

#tayor

what's the reference number running now?

Pbb give fv 40c

5 cents meat

Still wait queue number😅

not much meat yo

semicon support bussiness? can explain more detail about how AGX involved in semicon?

This post has been edited by wan7075: Jan 23 2024, 02:52 PM

3pm ref no 2426..seems not many ppl interested

Very bad number😅

This post has been edited by IPO ADDICT: Jan 23 2024, 09:28 PM

Give up

cehhh....this IPO - NO MITI
dun be ponda*
ALL NO MITI SURE PERFORM ONE

This post has been edited by IPO ADDICT: Jan 23 2024, 04:16 PM

Mbb 173X

These was during lunch time, current 🤷🏼‍♂️

#tayor

Gone case
Worst than tsa

Barely below 3000

This post has been edited by 8_valensi_8: Jan 23 2024, 04:35 PM

HURRYYYYYYYYYYY UPPPPPPP

2 MORE MINUTES

so far IPO with NO MITI...all FLY making money

Dragon year IPO- that's why all rushinggg for the IPO

Congratulation first
100% allocation

NO MITI.....

with MERCURY TP 57 SEN ( 63 % )

NO MITI is an opportunity / BLESSING

This post has been edited by IPO ADDICT: Jan 24 2024, 07:30 AM

Next is Balloting on Friday & Release of allocation table later that evenings

IPO. HUNGRY AGAIN....

This post has been edited by IPO ADDICT: Jan 26 2024, 02:54 PM

oversubscription rate => 15.43 times

https://www.mih.com.my/storage/attachment/b...ERHAD_BASIS.pdf

when can know the result of success, today?

NOW....you .....after IPO MANIA is BACK again

Normally on Monday...

Fridays kinda hard.. but can try check out after 7pm & see how...

.....mis calculated

now many regretted liao afraid to apply

Potentisl JACKPOT $$$$$ for IPO with NO MITI

see proven KJTS $$$$$ ....next HE...next AGX IPO



This post has been edited by IPO ADDICT: Jan 27 2024, 12:46 AM

MBB waiting list.

latest cimb FV. 59 SEN.@ 68 % ...

This post has been edited by IPO ADDICT: Feb 2 2024, 12:46 PM

Any TP ?

looks PROMISING.....
DRAGON ANGPOWS seen

hmmm....

Open 0.42 ..still profit..good Ipo

proven - AGX with NO MITI = $$$$$

so any IPO with NO MITI

This post has been edited by IPO ADDICT: Feb 7 2024, 09:25 AM

AGX makes debut 17.14% higher at 41c/share

https://www.thestar.com.my/business/busines...her-at-41cshare

.......

Im new to stock atm, wanted to ask what is MITI and how to know if a stock got MITI or not and why does MITI matter sir


EDITED

Is this MITI u guys talking about ? https://sahamonline.miti.gov.my/portal/faq

This post has been edited by froz3nnoob: Feb 17 2024, 12:34 PM

yes boss..

correct link u found..

read all about it & understand

From my understanding MITI = bumiputra company that listed but what the benefit of MITI companies for non trader?

actually speaking... Bumi company don't even needed to offer MITI shares...

it's Non Bumi Majority & foreign own companies that really needed to offer MITI Shares allocation... for Bumi Equities rules for Public Listings

BUMIPUTERA EQUITY REQUIREMENT FOR PUBLIC LISTED COMPANIES
The Securities Commission Malaysia (“SC”) was mandated by the Malaysia Government to process the Bumiputera equity requirement for public listed companies (“Bumiputera Equity Requirement”) aspects of certain corporate proposals.
The FAQ served as a guide on the Bumiputera Equity Requirement based on the policy by the Malaysia Government.

Corporations seeking listing on Bursa Malaysia Securities Berhad (“Bursa Malaysia”) are required to allocate 12.5% of the enlarged number of issued shares to Bumiputera investors to be approved or recognised by the Ministry of International Trade and Industry (“MITI”). This includes licensed financial institutions (“Licensed FIs”) seeking listing on Bursa Malaysia, whereby the shares to Bumiputera investors shall be allocated by the Ministry of Finance (“MOF”) instead.

In addition, at least 50% of the shares offered to the Malaysian public investors via balloting must be made available to Bumiputera public investors (“Bumiputera balloting allocation”). However, if there are no shares offered to the Malaysian public investors, the Bumiputera balloting allocation will not applicable.

I didnt know this rules exist, im so new on stock atm... need to do more read and guide catchup soon

welcome to the world of investing in Malaysia...

All thanks to NEP from Tun Razak

Why this corp no MITI?