KUALA LUMPUR (May 15): After a failed merger with Kajang-based brokerage firm JF Apex Securities Bhd, Mercury Securities Group Bhd (MSGB) is now eyeing a possible initial public offering (IPO) on Bursa Malaysia’s ACE market.
A check on Bursa’s website showed that MSGB – controlled by veteran broker Chew Sing Guan – filed its prospectus with the exchange on May 10.
The IPO may include a public issue of 157.095 million new shares, of which 44.65 million shares will be made available to the Malaysian public, 22.32 million shares for eligible directors and employees, 45, 47 million shares by way of private placement with selected investors and 44.65 million shares by way of private placement with selected bumiputera investors.
The IPO may also include an offer to sell 71.51 million existing shares, of which 66.97 million shares would be placed with selected bumiputera investors, and the remaining 4.53 million shares placed with other selected investors.
Pricing for the IPO has yet to be set, but MSGB’s share base would be expanded to 893 million shares upon listing.
Public Investment Bank Bhd is expected to be its principal adviser, sponsor, sole underwriter and placement agent.
Nevertheless, it should be noted that the prospectus exposure published on Bursa has not yet been registered with the exchange under Rule 3.12A of the ACE Market Listing Requirements and is only intended to solicit public comments.
“These prospectuses should not be used to make an investment decision. Securities cannot be offered and applications for securities cannot be accepted until the prospectus has been registered with the stock exchange,” Bursa stressed. .
Under the new regulatory regime effective January 1, Bursa is now a one-stop-shop for all ACE Market IPO approvals.
MSGB is a 1+1 licensed broker involved in the provision of corporate finance brokerage and advisory services. Its operational offices are located in Penang, Kuala Lumpur, Melaka, Johor and Sarawak.
Through its wholly owned subsidiary Mercury Securities Sdn Bhd (MSSB), MSGB is principally engaged in brokerage, corporate finance advisory and other related activities. Through Mercsec Tempatan and Mercsec Asing, the title company is also engaged in the provision of agency and depositary services.
MSGB saw its revenue nearly double from RM31.52 million in the year ended October 31, 2019 (FY19) to RM61.01 million in FY21. stock market segment contributed two-thirds of the group’s revenue, with the rest coming from its corporate finance division.
Commenting on its competitive advantages, MSGB said it has an established track record of 30 years in providing brokerage services since 1992, as well as nine years of experience in providing corporate finance advisory services since 2013.
“This has enabled our group to strengthen our market position and develop an established customer base for our brokerage business as well as corporate finance advisory services,” he said.
In April last year, the proposed merger between JF Apex and MSSB fell through after dragging on for more than two years. No reason was given for the decision to halt the proposed merger.
But those who had followed the JF Apex-MSSB saga should know that the merger was challenged by lawsuits filed by minority shareholders Concrete Parade Sdn Bhd and Pinetrains Sdn Bhd. The long-running legal battle had gone all the way to the federal government. To research.
JF Apex is a unit of Main Market listed Apex Equity Holdings Bhd which was founded by the late Chan Guan Seng.
Meanwhile, Insas Bhd unveiled in October last year its plans to unlock the value of M&A Securities Sdn Bhd via a reverse takeover exercise.
M&A Securities, whose managing director of corporate finance is prominent trader Datuk Bill Tan, is valued at RM222 million. The securities firm is expected to assume the listing status of furniture maker SYF Resources Bhd, which will be renamed M&A Capital Bhd.
Insas is the flagship company of little-known businessman Datuk Seri Thong Kok Khee.