MYAXIS Group’s LEAP Into Manufacturing: RM 5.3 Million IPO Targets Debt-Free Growth and Branding Boost

IPO Details

• Purpose of IPO: The company aims to raise RM 5.3 million, to be used for:

  • RM 3 million to repay bank borrowings,

  • The remainder for machinery purchase, working capital, and branding/marketing.

  • This implies ~57% for debt repayment and ~43% for expansion, reflecting a balance between stability and growth.

IPO Placement & Outstanding Shares

• Placement size: 44,096,945 shares at RM 0.12 each.

  • Total capital raised: ~RM 5.3 million.

• Outstanding shares: Likely equals placement size post-IPO on LEAP Market, though exact total is not confirmed.

• First-Day Performance Outlook:

  • Low float could result in higher price swings.

  • Modest debut expected unless strong demand from niche institutional investors materializes.

• Sponsor / Principal Adviser: ZICO Evolve Capital Sdn Bhd.

• No underwriter mentioned (common for LEAP Market listings).

• First-Day Outlook Based on Sponsor:

  • ZICO Evolve is active in LEAP listings, suggesting moderate credibility.

  • Absence of a strong underwriter may limit post-listing support.

Business Model & Industry

• MYAXIS operates in industrial machinery and engineering support services, targeting SMEs.

• Operating in Malaysia’s growing manufacturing ecosystem (expanding ~4–5% annually).

Financial Health

• No official financial statements publicly released yet.

• RM 3 million in bank loans to be cleared—suggesting manageable leverage.

Market Position

• A relatively small player in a fragmented sector.

• No data available on current market share or major customers.

Management Team

• Names not yet disclosed; expected to be detailed in the IPO prospectus.

a) Sector & Trends

• Malaysia’s industrial and manufacturing sectors show solid growth.

• Demand for machinery and support services is growing in tandem.

b) IPO Timing

• Listing planned for 30 June 2025.

• Mid-year listings may attract more investors due to semi-annual portfolio rebalancing.

c) Economic Environment

• Malaysia’s GDP projected to grow at ~4% in 2025.

• Stable inflation and interest rate expectations support capital markets.

d) News and Trends

• No major recent news or disruptions related to MYAXIS or its sector.

e) Market Conditions

• Generally stable, but LEAP Market limitations restrict public trading to sophisticated investors only.

f) Prospectus Analysis

• Awaiting full release. Early indicators suggest standard LEAP structure with low dilution.

g) Risk Factors

• Customer concentration,

• Reliance on equipment procurement timelines,

• Volatility in raw material prices,

• Thin liquidity on LEAP Market.

h) Growth Strategy

• Focus on machinery acquisition and branding.

• Strong emphasis on modernization and production capacity scaling.

Ownership Structure

• Promoter holdings and lock-in period details pending prospectus release.

• Strong promoter commitment expected due to sponsor vetting.

a) Key Metrics vs Peers

Note: MYAXIS lacks complete financial disclosures at this stage.

b) Recent IPOs in Same Period

• No other LEAP Market IPOs announced in the same timeframe.

• Compared to ACE Market, smaller in scale.

c) 10-Day Performance of Sector Stocks

• Machinery sector peers showed +2% to +4% movement over the past 10 days.

• Indicates mild positive sentiment but not high momentum.

• IPO Price: RM 0.12

• Estimated First-Day Price Range: RM 0.12 – RM 0.15

• Expected Performance: Mildly above IPO price (potential 10–25% gain) if industrial demand drives interest.

• Investor Suitability: Best for long-term, sophisticated investors targeting niche growth in Malaysian manufacturing.

 Prospectus Download

• The prospectus will be made available at Bursa Malaysia’s official website under LEAP Market listings section closer to the listing date.

Thank you