Malaysia-based MeGroup lodges preliminary offer document for Catalist listing

MALAYSIA-BASED MeGroup lodged on Thursday evening its preliminary offer document for a listing on the Catalist board.

MeGroup is involved in the manufacturing of noise, vibration and harshness (NVH) components and other non-NVH components primarily for the automotive industry.

It also owns and operates several car dealerships for the sale of new cars in various parts of Malaysia. Its manufacturing customers include Honda, Mazda, Proton and Perodua, and its dealership principals are Honda, Mazda and Peugeot.

MeGroup plans to use the proceeds from the offer of invitation shares for business expansion - including organic expansion and mergers and acquisitions - and general working capital purposes.

The company did not state how much it is intending to raise from the initial public offering (IPO).

For the financial year ended March 31, 2018, the firm recorded a net profit of RM8.9 million (S$2.9 million), up from RM49,729 a year ago.

This came on the back of increased revenue of RM148.8 million, up 65.6 per cent from FY2017.

The rise in revenue was due to increases in revenue from both the manufacturing business and the dealership business.

Revenue for the dealership segment more than doubled, mainly due to an increase in sales of car and revenue from the provision of after-sales services.

The sponsor and issue manager for the IPO is CIMB Bank, Singapore branch.

The underwriter and placement agent is CGS-CIMB Securities (Singapore).