1 week Ago By Azanis Shahila Aman
KUALA LUMPUR: MSB Global Group Bhd plans to enter the electric vehicle market by introducing its own in-house branded electric vehicle (EV) charger.As Malaysia's transition from internal combustion engine vehicles to EVs gains traction, MSB Global managing director Datuk Ow Kee Foo said it aims to diversify its revenue streams and benefit from the anticipated growth in EV ownership here.Ow said the company plans to allocate RM840,000 or 3.
14 per cent of its initial public offering (IPO) proceeds for its new in house branded EV charger."Our group intends to market, trade and distribute our in-house branded EV charger. We target to launch our in-house branded EV charger by the second quarter of 2025.
"Introducing our in-house branded charger will allow us to meet the rising demand for EV infrastructure and participate in the growth of the EV market in Malaysia," he told Business Times.Recently, MSB Global dropped 15 per cent on its ACE Market debut, closing at 17 sen, down from its IPO price of 20 sen per share.It is the sixth ACE Market listing since March to close below its IPO price.
Investor demand during its IPO, which raised RM41.4 million, was also relatively weak with applications from retail investors totalling about six times the available shares for subscription.The company is allocating 22.
58 per cent of the total proceeds from the public issue to buy new machinery and equipment, about 18.7 per cent for the construction of a new factory and warehouse, and another 3.14 per cent for its new in-house EV charger.
MSB Global will also set aside 20.67 per cent for the repayment of bank borrowings, while the balance is for general working capital and to defray the listing expenses.Ow said the company believes Malaysia's automotive market is thriving, with a growing vehicle population driving strong demand for aftersales services, parts and components.
As technological advancements and EV adoption gain momentum, he said the automotive aftermarket sector is expected to continue growing, although a shift to EVs may impact demand for certain traditional parts."The market for automotive lubricants and fluids is also on the rise, driven by the high volume of passenger vehicles and frequent oil changes."Overall, the automotive aftersales market in Malaysia presents a dynamic growth opportunity with a mix of traditional and evolving demands," he added.
© New Straits Times Press (M) Bhd.
