KUALA LUMPUR (Sept 10): Interior fit-out firm Inspace Creation Bhd is preparing for a listing on the ACE Market of Bursa Malaysia, which will involve the sale of up to a 26.48% stake in the company.

According to its draft prospectus filed with the bourse, proceeds from the initial public offering (IPO) will be used for capital expenditure, including the setup of new storage and a mock-up space that will be used to display furniture and fittings. Funds will also be allocated for working capital and the repayment of bank borrowings.

Inspace’s primary business involves providing interior fitting-out services, which include project planning and management, design conceptualisation and build, as well as servicing and maintenance works.

Its IPO will comprise a public issue of 68.5 million new shares, which represent an 18.55% stake in the company, and an offer for sale of 97.8 million existing shares that represents 7.93%. The final offer price has yet to be determined.

Under the public issue, 18.5 million shares will be made available to the Malaysian public through balloting, while 8.5 million shares will be allocated to eligible individuals. The remaining 41.5 million shares from the public issue, along with the offer-for-sale portion, will be placed out to selected investors.

The sale of existing shares will be conducted by Conceptual Holdings and executive director Wong Chong Siong. Wong also holds an 80% stake in Conceptual Holdings. Following the exercise, Wong’s direct stake will be reduced from 25% to 14.14%, while Conceptual Holdings’ shareholding will be diluted from 75% to 59.38%.

As of July 28, the Desa ParkCity, Kuala Lumpur-based company had an order book of RM21.2 million for its interior fitting-out services, which are expected to be progressively recognised over the next three to six months.

For the financial year ended Dec 31, 2024 (FY2024), Inspace reported a profit after tax of RM7.05 million on a revenue of RM57.75 million.

TA Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.