GTA Holdings prices IPO at 35 sen, to raise RM71.75mil

KUALA LUMPUR: The IPO of GTA Holdings Bhd, an aviation maintenance, repair and overhaul (MRO) services provider, has been priced at 35 sen per share, with the aim of raising RM71.75 million. The offering, which is set to list on Bursa Malaysia's ACE Market on September 8, includes 329 million shares - 205 million new shares and 124 million offered for sale.

This public offering constitutes 25.48% of GTA Holdings' enlarged share capital, which stands at approximately 1.29 billion shares, as per the prospectus submitted to Bursa Malaysia. After listing, the company anticipates a market capitalisation of RM451.97 million. Of the RM71.75 million in gross proceeds, a significant portion will be allocated to different purposes: RM25 million (34.84%) for establishing a new operating facility, RM24.15 million (33.66%) for working capital, RM10 million (13.94%) to expand helicopter MRO activities into the Middle East, RM5.9 million (13.94%) for MRO services for aircraft landing gear, wheels and brakes, and the remaining RM6.70 million (9.35%) to cover listing expenses.

GTA Holdings is planning to relocate its existing MRO workshop to a new facility in Shah Alam, which will be about 142,073 square feet in size. The company's principal adviser, sponsor, underwriter, and placement agent for the IPO is Hong Leong Investment Bank Bhd.