KUALA LUMPUR (May 15): After an unsuccessful merger with Kajang-based brokerage firm JF Apex Securities Bhd, Mercury Securities Group Bhd (MSGB) is now eyeing a potential IPO in the market. ACE from Bursa Malaysia.
A check on the Bursa website showed that MSGB, controlled by veteran stockbroker Chew Sing Guan, filed its prospectus filing with the bourse on May 10.
The initial public offering may comprise a public issuance of 157.095 million new shares, including 44.65 million shares available to the Malaysian public, 22.32 million shares for directors and eligible employees, 45.47 million shares by placement private placement for selected investors and 44.65 million shares via private placement to selected bumiputera investors.
The initial public offering may also include an offer to sell 71.51 million existing shares, of which 66.97 million shares will be placed with selected bumiputera investors and the remaining 4.53 million shares will be placed with other selected investors. .
The price of the initial public offering has not yet been set, but MSGB’s share base would expand to 893 million shares upon listing.
Public Investment Bank Bhd will be your main advisor, sponsor, sole underwriter and placement agent.
However, it should be noted that the prospectus exposure posted in Bursa has not yet been listed on the exchange under Rule 3.12A of the ACE Market Listing Requirements and is solely for the purpose of seeking public comment.
“These prospectuses should not be used to make any investment decisions. No securities may be offered and no applications for securities may be accepted until the prospectus has been listed on the exchange,” Bursa stressed.
Under the new regulatory regime effective January 1, Bursa is now a one-stop hub for all ACE Market IPO approvals.
MSGB is a licensed 1+1 broker engaged in the provision of corporate finance advisory and stock brokerage services. Its operational offices are located in Penang, Kuala Lumpur, Melaka, Johor and Sarawak.
Through wholly owned Mercury Securities Sdn Bhd (MSSB), MSGB is principally engaged in securities brokerage, corporate finance advisory and other related businesses. Through Mercsec Tempatan and Mercsec Asing, the brokerage firm also provides nomination and custody services.
MSGB saw its revenue nearly double from RM31.52 million in the fiscal year ending October 31, 2019 (FY19) to RM61.01 million in FY21. The stock brokerage segment contributed two-thirds of the group’s turnover, while the rest came from its corporate finance division.
Commenting on its competitive advantages, MSGB said it has an established 30-year track record of providing stock brokerage services since 1992, as well as a nine-year track record of providing corporate financial advisory services since 2013.
“This has enabled our group to strengthen our position in the market and develop an established client base for our brokerage business as well as corporate financial 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 mentioned for the decision to discontinue the merger plan.
But those who have been following the JF Apex-MSSB saga should know that the merger was challenged by lawsuits from minority shareholders Concrete Parade Sdn Bhd and Pinetrains Sdn Bhd. The long judicial battle had reached the Federal Court.
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 revealed in October last year its plans to unlock the value of M&A Securities Sdn Bhd through 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 will assume the listing status of furniture maker SYF Resources Bhd, which will be renamed M&A Capital Bhd.
Insas is the flagship company of media-shy businessman Datuk Seri Thong Kok Khee.