At the IPO prospectus launch, from left, are Golden Destinations CEO Lim Swee Chuan,
MD Mita Lim, Deputy Minister of Tourism, Arts, and Culture Chiew Choon Man, CEO David Lim of UOB Kay Hian, and MD of capital markets Tan Meng Kim. (Image by The Edge/Zahid Izzani)
KUALA LUMPUR (March 26): By listing on the ACE Market, Golden Destinations Sdn Bhd, a full-service travel business, hopes to generate RM135 million.
According to its prospectus, the firm is valued at around RM450 million for the first public offering (IPO), which is priced at 45 sen per share. The company will raise RM90 million from the IPO, and its founder, Mita Lim, an industry veteran with almost 40 years of expertise, will receive an additional RM45 million.
Applications are accepted from March 26 through April 6. April 16 is the intended listing date.
Instead than selling its goods and services to final customers directly, Golden Destinations primarily serves a network of authorized travel agents in the business-to-business sector.
In addition to offering stand-alone travel support services like airline ticketing, the company curates travel and cruise packages that are sold through a network of more than 800 travel agents throughout Malaysia.
Over 88% of the money raised from the public offering of additional shares has been set aside for expansion, which includes marketing expenditures and the establishment of a centralized headquarters. The business intends to modernize its IT infrastructure and is growing in Singapore and East Malaysia.
In order to support operations and expansion, Golden Destinations is also seeking to recruit 90 more people to its present workforce of over 280. The remaining earnings will be used for listing costs and working capital.
With RM592.4 million in revenue last year, the company generated a profit of RM37.56 million after taxes. Travel package sales made up 73% of its total revenue, with ticketing and other services coming in second with 27%.
The IPO's major adviser, sponsor, underwriter, and placement agency is UOB Kian Hian.
