KUALA LUMPUR: Golden Destinations Group Bhd, a business-to-business outbound travel experience curator, plans to raise approximately RM90 million from its ACE Market initial public offering (IPO) to expand its travel agent network, strengthen brand presence, and support its expansion into East Malaysia and Singapore.
Of the total proceeds, RM50 million (55.6%) will be allocated towards establishing a new headquarters in Kuala Lumpur city centre to accommodate operational growth. The proposed facility will offer at least 35,000 sq ft of net floor area, up from the current 20,869 sq ft across its existing offices.
An additional RM13.5 million (15%) has been earmarked for branding and marketing initiatives, while RM6 million (6.7%) will support geographic expansion. The group has also allocated RM4 million (4.4%) for IT systems and infrastructure, RM6 million (6.7%) for workforce expansion, RM4 million (4.4%) for working capital, and RM6.5 million (7.2%) for listing expenses.
The IPO entails the issuance of 200 million new shares at an offer price of 45 sen each, implying a market capitalisation of RM450 million based on an enlarged share capital of one billion shares.
COO Charles Lim said travel demand is expected to remain resilient, with travellers opting to shift destinations rather than cancel trips amid Middle East tensions and rising oil prices.
“Demand has shifted back towards Asia and East Asia, including China, which is a more profitable segment and a key revenue contributor,” he said at the prospectus launch today.
He added that higher fuel surcharges are likely to have a limited impact on the group, given that its business is largely driven by pre-booked group tours.
“Fuel surcharge increases do have some impact, particularly for FIT tickets where flights are booked separately, as airline prices are rising. However, our core focus on group tours allows us to secure airline seats in advance under contractual arrangements, mitigating the overall impact,” Lim said.
Managing director Mita Lim noted that the group typically secures group tour seats about a year in advance, with capacity booked through December and, for certain airlines such as AirAsia, up to March 2027. This provides visibility on costs and supports pricing stability despite fluctuations in fuel prices.
He added that the group’s business model is anchored on a collaborative ecosystem with its network of 848 travel agents, who drive sales while the company provides inventory, pricing and systems.
The group expects to maintain overall margins of about 4% to 5%, while its core group tour segment can deliver higher margins of 20% to 25%, supported by dynamic pricing and early inventory booking.
Of the total IPO shares, 50 million will be offered to the Malaysian public, 35 million allocated to eligible personnel, 90 million placed with institutional and selected investors, and 25 million reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
A further 100 million offer-for-sale shares will also be placed with approved Bumiputera investors.
Applications for the IPO will close on April 6 with Golden Destinations’ listing on the ACE Market scheduled for April 16.
UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO. –
