GTA Holdings launches RM71.75 million ACE Market IPO for expansion
GTA Holdings Berhad launches its ACE Market IPO to raise RM71.75 million, with proceeds directed toward a new operating facility, Middle East expansion, and working capital. The company reported FY25 revenue of RM331.78 million, up 40.20% year-on-year, driven by increased aviation equipment sales and maintenance activity.
*this image is generated using AI for illustrative purposes only.
GTA Holdings Berhas launched its prospectus for an initial public offering on the ACE Market of Bursa Malaysia Securities Berhad, aiming to raise RM71.75 million through the issuance of 205,000,000 new shares at an IPO price of RM0.35 per share. The offering also includes an offer for sale of 124,000,000 existing shares by selling shareholders, with proceeds from the public issue accruing entirely to the company.
The aviation maintenance, repair and overhaul (MRO) specialist plans to deploy the capital toward establishing a new operating facility, expanding helicopter MRO activities in the Middle East, and broadening its service offerings into landing gear, wheels and brakes for fixed-wing aircraft.
Financial Performance
Financially, GTA recorded revenue of RM331.78 million in FY25, representing an increase of 40.20% from RM236.65 million in FY24. This growth was driven by higher sales of aviation equipment and stronger corrective maintenance activity. The company operates from the Helicopter Centre at Sultan Abdul Aziz Shah Airport in Subang, serving regulated and mission-critical segments including aviation operators and defence-linked end markets.
Proceeds Allocation
The gross proceeds from the public issue will be allocated as follows:
| Use of Proceeds | Amount (RM) |
|---|---|
| Partial repayment of bank financing for new operating facility | 25.00 million |
| General working capital requirements | 24.15 million |
| Listing expenses | 6.70 million |
| Expansion of helicopter MRO activities in Middle East | 10.00 million |
| Expansion into MRO of landing gear, wheels and brakes | 5.90 million |
| Total | 71.75 million |
The total estimated cost of the new operating facility is RM38.93 million, comprising RM32.93 million for property purchase and RM6.00 million for civil, structural, mechanical and electrical works, furniture and fit-out works.
What the Numbers Show
The allocation of proceeds reveals a strategic pivot from pure service provision to asset-heavy infrastructure development. With RM25.00 million designated for debt repayment related to a new facility and RM5.90 million for expanding into landing gear MRO, nearly half of the raised capital targets fixed capabilities rather than immediate liquidity. This contrasts with the RM24.15 million reserved for general working capital, suggesting management intends to lock in long-term capacity ahead of potential demand growth in the Middle East and adjacent MRO segments.
Hong Leong Investment Bank Berhad serves as the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for the IPO. Dato' Nonee Ashirin binti Dato' Mohd Radzi, Managing Director and Chief Executive Officer of GTA Holdings Berhad, stated that the initiatives align with strengthening the company's position within the aviation maintenance ecosystem while supporting Malaysia's aerospace industry development.
How might the expansion into landing gear, wheels, and brakes MRO alter GTA Holdings' competitive landscape against established fixed-wing MRO providers in Southeast Asia?
What specific geopolitical or economic risks in the Middle East could impact the ROI of the RM10 million allocated for helicopter MRO activities in that region?
Given the shift toward asset-heavy infrastructure with the new facility, how will this change affect GTA Holdings' debt-to-equity ratio and operational leverage in the medium term?
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