SumiSaujana Group Berhad to Raise RM74.4 Million from ACE Market IPO!

Strategic Expansion Through IPO

SumiSaujana Group Berhad (SumiSaujana), a leading manufacturer of oil and gas (O&G) specialty chemicals, has officially launched its prospectus in preparation for its Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad. This marks a pivotal step in the company’s growth journey, providing the necessary capital to expand production capacity, enhance global market reach, and reinforce business sustainability.

A Leading Name in O&G Specialty Chemicals

Founded in 2010, SumiSaujana has built a solid reputation as a trusted supplier of high-performance drilling fluid chemicals, production chemicals, and refinery chemicals. These solutions play a crucial role in enhancing operational efficiency, protecting equipment, and optimizing processes across the upstream, midstream, and downstream sectors of the O&G industry. The company has secured long-term partnerships with multinational oilfield service providers, international oil companies, and national oil corporations, cementing its global presence.

With over 70% of revenue generated from international markets, SumiSaujana maintains a strong footprint in the Asia Pacific, Middle East, Africa, Europe, and the Americas.

IPO Details and Capital Allocation

Through this IPO exercise, SumiSaujana aims to raise RM74.4 million by issuing 310.0 million new shares at RM0.24 per share. The funds will be strategically allocated as follows:

RM40.2 million (54.0%) – Acquisition of the New Puncak Alam Warehouse and Corporate Office to consolidate operations.
RM18.9 million (25.4%) – Acquisition of its existing Puncak Alam Factory to enhance long-term sustainability.
RM2.1 million (2.8%) – Capital expenditure to upgrade facilities.
RM7.6 million (10.3%) – Expansion of R&D division to drive innovation.
RM5.6 million (7.5%) – Listing expenses.

Additionally, an Offer for Sale of 90.0 million shares (6.23% of enlarged share capital) will be made available via private placement to Bumiputera investors approved by MITI. The proceeds from this sale will be distributed to selling shareholders.

IPO applications are now open and will close on March 25, 2025, with SumiSaujana’s listing on the ACE Market set for April 9, 2025. At RM0.24 per share, the company’s estimated market capitalization upon listing will be RM346.5 million.

CEO’s Vision for Growth

Encik Norazlam Bin Norbi, Executive Director and CEO of SumiSaujana, expressed his enthusiasm for this milestone:

“The launch of our IPO prospectus marks a transformative moment for SumiSaujana. Our ability to meet the evolving demands of our customers has been key to our success. This IPO will enable us to accelerate growth, expand production capacity, and strengthen our global presence.”

He further emphasized the company’s commitment to business sustainability and innovation, ensuring customers receive high-quality specialty chemicals that enhance efficiency and reliability in O&G operations.

RHB Investment Bank’s Role in the IPO

As the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent, RHB Investment Bank Berhad plays a vital role in supporting SumiSaujana’s listing journey.

Mr. Kevin Davies, CEO and Managing Director of RHB Investment Bank, stated:

“SumiSaujana’s IPO represents a significant milestone, positioning the company for continued success in the highly specialized O&G industry. We are honored to be part of this journey and look forward to supporting their expansion.”

Expanding Beyond O&G: A Diversified Future

While O&G specialty chemicals remain the company’s core focus, SumiSaujana is actively expanding into the industrial specialty chemicals sector. This diversification strategy aims to:

Broaden the company’s product portfolio.
Enhance resilience against market fluctuations in the O&G industry.
Tap into new industrial and commercial markets.

Internationally, SumiSaujana is reinforcing its global footprint by establishing new production facilities in North America and the Middle East, strengthening its presence in key international markets.

A Promising Future in Specialty Chemicals

With its upcoming listing on the ACE Market of Bursa Securities, SumiSaujana is well-positioned for accelerated growth and long-term value creation. Strategic investments in manufacturing, R&D, and sustainability initiatives will further enhance its position as a trusted global leader in specialty chemicals.

The success of this IPO not only highlights SumiSaujana’s strong industry standing but also signals a new chapter of innovation, expansion, and financial strength for the Group.