Nigel Chong 庄证评 wrote a post · Mar 30 15:56

MSB Global – 5 Must-Know Facts Before You Subscribe

MSB IPO

MSB Global – 5 Must-Know Facts Before You Subscribe

Over the past few days, I’ve been closely reviewing MSB Global’s IPO documents and looking into how other industrial-sector IPOs have performed. MSB (MSB Global Group Berhad) is a Malaysian company with over 25 years of experience in distributing automotive spare parts and lubricants. It is now planning to list at RM0.20 per share.

There are less than two weeks left before the IPO application deadline, with the subscription closing next week. Here’s a concise breakdown of key insights for you.

📌 MSB IPO Key Info:

• IPO Price: RM0.20

• Listing Market: Bursa Malaysia ACE Market

• Estimated Market Cap: RM122 million

• Total Shares (Post-IPO): 610,000,000 shares

📆 IPO Timeline:

• Opening of Application: 21 March 2025

• Closing of Application: 4 April 2025

• Balloting Date: 8 April 2025

• Listing Date: 15 April 2025

💼 Use of IPO Proceeds:

MSB plans to use the funds raised mainly for expansion and future development, including:

• Construction of a new factory

• Purchase of equipment, EV charger development, and loan repayment

• General working capital

• Listing-related expenses

📌 What does MSB do?

MSB is a local company with over 25 years of operations, primarily involved in:

• Aftermarket automotive parts (e.g., driveshafts, brake rotors, suspension systems)

• Automotive lubricants and car care fluids

• Managing multiple in-house brands (e.g., FUKUOKA, ZR.ZURIC, RAINEATER)

• Exclusive distributor in Malaysia for over 23 years with GSP, a China-listed company

🔍 Rooted in the Industry with a Large Customer Base

MSB is a key player in Malaysia’s automotive aftermarket. It serves over 1,000 wholesalers, retailers, and service centers nationwide. With over 3,000 SKUs of spare parts and 200 SKUs of lubricants, plus a 10-year exclusive distribution agreement with GSP, this long-term relationship reflects strong industry positioning and stability.

🔍 Lubricants Business Growing Rapidly, Expanding into B2C

From RM9.63 million in 2021 to RM19.73 million in 2023, MSB’s lubricant sales more than doubled in three years (105%+ growth).

The company is planning to build its own production line to improve control over product range, supply, and quality. Potentially, It also aims to expand its B2C presence on platforms like TikTok Shop (existing) and Shopee, creating a new, stable revenue stream.

🔍 Entering the EV Segment – A Step into the Future

MSB announced it will launch its own in-house EV charger brand, which is now part of its corporate strategy. This move shows that the company is not just relying on traditional automotive business but is also positioning itself for the long-term growth driven by the electric vehicle trend.

🔍 Healthy Financials and Stable Cash Flow

• FY2023 Net Profit: RM8.26 million

• Total Assets: RM59.93 million

• Cash & Equivalents: RM4.96 million

• Current Ratio: 4.64x (strong short-term liquidity)

• Gearing Ratio: Only 0.32x

These numbers show that MSB is financially sound and not overly dependent on debt, giving it resilience even in a rising interest rate environment.

🔍 Reasonable Valuation with Potential for Re-Rating

At an IPO price of RM0.20, MSB’s price-to-earnings ratio (PER) is considered relatively low compared to similar industrial companies listed on the Main Market, offering room for future growth and valuation re-rating.

📲 How to Subscribe?

You can apply for the MSB IPO via your stock trading account, the Moomoo platform, or participating banks online.

📌 Don’t forget — the subscription deadline is 4 April 2025!

📝 Conclusion

Lately, the performance of newly listed IPOs has been quite underwhelming — many debut below their offer prices on the first day of trading.

But this also creates an opportunity: it allows retail investors like us to identify good IPOs and potentially buy them at prices even lower than their IPO price.

This, I believe, is a true advantage for individual investors — if you’ve done your research and have confidence in the company’s long-term prospects.

Let’s hope the Malaysian stock market continues to improve — and may we all make smarter, more informed investment decisions! 🚀📈

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