PETALING JAYA: Prestar Resources Bhd’s 51%-owned Tashin Holdings Bhd is looking to raise RM34.41 million from its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.
Tashin said in a statement that it plans to use RM17.55 million (51%) raised to purchase a piece of industrial land in Seberang Perai, Penang for the construction of a new factory with a total floor space of approximately 90,000 sq ft.
It will further utilise RM7.7 million (22.38%) to purchase machinery and equipment to support its business expansion into the manufacturing of wire mesh and to upgrade the existing steel processing line; RM5.96 million (17.32%) as general working capital while the remaining RM3.20 million (9.3%) to be used to defray listing expenses for the initial public offering (IPO).
The company’s steel products are widely utilised and applied in various industries such as automotive, manufacturing, engineering and steel fabrication as well as construction. Its current factory has an operating capacity of about 224,280 metric tonnes per annum.
Tashin managing director Lim Choon Teik said the new factory is intended to house the company existing manufacturing line for flat and square bars and its new manufacturing line for wire mesh.
“We believe the addition of wire mesh in our manufactured product offerings will allow us to further improve our profitability and strengthen our customer base, which in turn will enhance our competitive position,” he added.
Under the listing exercise, Tashin is issuing 59.33 million new shares at 58 sen per share, of which 17.45 million shares will be made available to the Malaysian public via balloting; 8.72 million shares for its eligible directors and employees as well as eligible directors and employees of the Prestar Group; 17.45 million shares for the entitled shareholders of Prestar while the remaining 15.71 million shares for private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
Tashin’s existing shareholders will also make an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors approved by MITI by way of private placement.
Based on the enlarged share capital of 348.99 million shares, Tashin is expected to have a market capitalisation of RM202.41 million upon its listing scheduled on August 1.
The IPO is open for subscription till July 19.
M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO while Malacca Securities Sdn Bhd and JF Apex Securities Bhd are joint underwriters for the IPO exercise.
Source: The Sun Daily