Aviation MRO specialist sees flat start on Bursa debut

KUALA LUMPUR: Aviation maintenance, repair and overhaul (MRO) services provider GTA Holdings Bhd made a muted debut on Bursa Malaysia's ACE Market today, opening unchanged at its initial public offering (IPO) price of 35 sen.

The stock saw 106,509 shares change hands at the opening bell, valuing the company at RM451.97 million.

However, as at 10.20am, the stock edged up 1.4 per cent to 35.5 sen with 58.52 million shares traded.

GTA raised RM71.75 million through the issuance of 205 million new shares, while an offer for sale of 124 million existing shares generated another RM43.4 million for selling shareholders.

Investor appetite was notably strong.

GTA's Malaysian public offering was oversubscribed 22.16 times, with 13,797 applications received for 1.5 billion shares worth approximately RM523.35 million.

Lembaga Tabung Angkatan Tentera (LTAT) is set to become a substantial shareholder, subscribing for a 5.6 per cent stake in GTA's enlarged share capital under the institutional offering.

Selangor-based GTA specialises in MRO services for helicopter and fixed-wing engines, while also supplying aviation equipment such as new engines, engine modules and parts.

Of the IPO proceeds, RM25 million will fund a new operating facility, RM10 million is earmarked for expanding helicopter MRO operations in the Middle East, and RM5.9 million will support entry into landing gear, wheels and brakes MRO services.

Another RM24.15 million is allocated for working capital.

GTA's Middle East expansion remains on hold amid regional security risks, with Brunei among alternative markets under consideration.

For FY2025, it's net profit rose 10.5 per cent to RM40.45 million, while revenue jumped 40.2 per cent to RM331.78 million.