Posted on 20 Feb 2025
Saliran Group Bhd (KL:SALIRAN), which is en route to list on the ACE Market of Bursa Malaysia on March 13, is unaffected by the new 25% tariffs imposed by the US on all steel and aluminium imports into the country as the supplier of pipes, fittings, flanges and steel products operates primarily within Southeast Asia, according to its managing director Dennis Liaw Choon Wei.
Saliran continues to focus its efforts on expanding its presence in the region where demand remains strong, he added.
He noted that the company’s strategy for growth is centred on capitalising on opportunities in markets like Vietnam and Thailand.
"The potential in these markets is clear, and we are committed to focusing on the Southeast Asian region at this time, as demand continues to be robust," he told a press conference on Wednesday after the launch of Saliran’s prospectus in conjunction with its upcoming listing.
Saliran plans to utilise the proceeds raised through its initial public offering (IPO) to fuel its expansion into Indonesia. The IPO aims to raise RM21.71 million through the issuance of 80.4 million shares at a retail price of 27 sen per share.
This includes the establishment of a new sales office in south Jakarta, with an estimated budget of RM1.2 million allocated for the office rental, working capital, and new equipment acquisition. The new office will serve as a strategic base to strengthen Saliran's market presence in Indonesia.
It will house a dedicated sales team tasked with building customer relationships and driving business growth in the region, a key market for the company's ongoing expansion efforts.
In addition to its expansion into Indonesia, Saliran plans to further develop its product offerings, particularly in the supply and distribution of the “THF” products. Saliran has secured exclusive rights to market and distribute the THF products in key Southeast Asian markets, including Malaysia, Indonesia, Singapore, Thailand, Vietnam and the Philippines.
The THF brand is jointly owned by Tae Heung and Saliran Group.
Initially, these initiatives will be rolled out in Malaysia, with plans for expansion into Indonesia following the setup of the new office.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
Source:The Edge
