Golden Destinations targets RM90 million from ACE Market IPO

KUALA LUMPUR (March 26): Golden Destinations Group Bhd aims to raise RM90 million through its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

The exercise involves the issuance of 200 million new shares at an issue price of 45 sen each, giving the company a market capitalisation of RM450 million based on an enlarged share base of one billion shares.

Golden Destinations, a full-service outbound travel experience curator, operates primarily through a business-to-business (B2B) model, leveraging a nationwide network of travel agents for distribution.

The company focuses on product curation, itinerary development and coordination of travel services under its flagship Golden Destinations (GD) brand.

Of the proceeds, RM50 million will be allocated towards establishing a centralised headquarters to support operational expansion.

Another RM13.5 million is allocated for branding, marketing and promotional activities in Malaysia and Singapore.

In addition, RM6 million will be used to expand its geographical presence, particularly in East Malaysia and potentially Singapore, while RM4 million is set aside to enhance IT systems and operational infrastructure.

The company has also earmarked RM6 million for workforce expansion, RM4 million for working capital, and RM6.5 million for listing expenses.

Applications for the IPO will close at 5pm on April 6 with listing scheduled for April 16.

Managing director Mita Lim said the prospectus launch marks a key step in the company’s transition into a listed entity.

“With our established industry presence and extensive network of travel partners and agents, the IPO will enable us to strengthen our operational capabilities, enhance our brand presence and further scale our curated travel offerings to meet the growing demand for international travel,” he said.

UOB Kay Hian (M) Sdn Bhd chief executive officer David Lim added that Golden Destinations’ strong brand and extensive distribution network position it well to capitalise on the continued recovery in outbound travel.

UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.