IPO Series - TMK Chemical Berhad - Chemical Management & Storage Company

Figure 1: IPO timetable of TMK Chemical Berhad
-Will be listed on the MAIN Board

Info of IPO
Enlarged no. of shares upon listing: 1000 million
IPO price: RM1.75
Market capitalization: RM1750 million
Estimated funds to raise from Public Issue:  RM385 million
PE ratio = 19.10x (based on FY2023)

Figure 2: Business model of TMK Chemical Berhad
Source: TMK Chemical Berhad IPO prospectus

Figure 3: Utilization of proceeds of TMK Chemical Berhad
Source: TMK Chemical Berhad IPO prospectus

Dividend Policy
-The group targets a payout ratio of 30% to 50% of PAT

Figure 5: Major customers and suppliers of TMK Chemical Berhad in FPE2024
Source: TMK Chemical Berhad IPO prospectus

Figure 6: Profit & Loss statement of TMK Chemical Berhad

Figure 7: Financial position of TMK Chemical Berhad

Figure 8: Principal markers of TMK Chemical Berhad

Source: TMK Chemical Berhad IPO prospectus

Figure 9: Market share of TMK Chemical Berhad in Malaysia, Vietnam, and Singapore

Source: TMK Chemical Berhad IPO prospectus

Financial overview, industry market, and personal opinion
-Based on the existing data, the group’s PAT has maintained more than RM100 million from FY2021 to FY2023, and RM91.60 million for FY2023. However, it is expected the group’s PAT in FPE2024 will exceed RM100 million as well.
-The principal market of TMK Chemical is focusing in Malaysia, with more than 50% of sales from FY2021 to FY2023, where FPE2024 dropped slightly to 48.5%.
-Referring to the group’s fundamentals, its PE for FY2023 is slightly higher than the given average PE, which is 13.4x. However, the highest PE is from Luxchem Corporation Berhad, which has 17.9x of PE based on the given industry players.

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By: Jshen Ng