business growth


Stocks, yields dip with Fed meeting on tap

NEW YORK, June 18 — A gauge of global stock markets dipped slightly yesterday after a mostly strong month and benchmark US bond yields edged lower as investors awaited developments this week from central banks in the United States and elsewhere….

Faith in the Fed nudges Wall Street higher

NEW YORK, June 18 — Wall Street edged higher yesterday, supported by Facebook, Amazon and Apple, as investors awaited a key Federal Reserve meeting that is expected to lay the groundwork for an interest rate cut later this year. The US central…

Mestron’s IPO oversubscribed by 17.53 times

PETALING JAYA: Mestron Holdings Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 17.53 times.

The steel pole maker is set to be listed on the ACE Market of Bursa Malaysia on June 18.

A total of 5,720 applications for 731.97 million new shares, valued at RM117.12 million were received from the Malaysian public for 39.5 million new shares made available for public subscription.

In addition, the 8.75 million new shares allocated to the eligible directors and employees of the company have been fully subscribed. Meanwhile, the 188.75 million shares allocated for private placement have also been fully placed out.

Mestron expects to raise a total of RM25.28 million from the public issue of 158 million new shares a price of 16 sen per share.

Of the IPO proceeds, some RM13 million (51.4%) will be used to expand its main manufacturing facility and acquire more manufacturing machineries and equipment for future business growth.

Some RM5.18 million (20.5%) has been earmarked working capital to acquire raw material supporting its capacity expansion; RM4 million (15.8%) will be used to repay bank borrowings and the remaining RM3.10 million to defray listing expenses for the IPO.

Mestron Holdings IPO oversubscribed 17.53 times

KUALA LUMPUR, June 10 — Steel pole maker Mestron Holding Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 17.53 times. A total of 5,720 applications for 731.97 million new shares valued at…

Mestron eyes RM25m from IPO for expansion

KUALA LUMPUR: Steel pole maker Mestron Holdings Bhd expects to raise RM25.28 million through its proposed listing on the ACE Market of Bursa Malaysia.

The company plans to use RM13 million (51.4%) raised from the initial public offering (IPO) to expand its main manufacturing facility and acquire more manufacturing machineries and equipment for future business growth.

It will further utilise RM5.18 million (20.5%) for working capital to purchase raw materials such as steel plates and pipes to support its expansion in capacity; RM4 million (15.8%) to repay bank borrowings while the remaining RM3.1 million (12.3%) to be used to defray listing expenses for the IPO.

Mestron managing director Por Teong Eng said the expansion of its main manufacturing facility will increase the company’s production capacity of steel poles by 5,700 metric tons (MT) to 11,400 MT per annum. It will also enhance Mestron’s manufacturing capability for specialty poles particularly, high mast poles and telecommunication monopoles.

“This is in line with our business strategies to expand the company’s revenue stream from its specialty pole business segment particularly high mast and telecommunication monopoles as the gross profit (GP) margin for specialty poles is relatively higher than the GP margin for standard street light poles,” he said in a statement.

Under the listing exercise, Mestron is issuing 158 million new shares at 16 sen per share of which 39.5 million new shares will be made available to the Malaysian public via balloting; 8.75 million new shares for its eligible directors and employees; 30.75 million new shares by way of private placement to selected investors while the remaining 79.0 million new shares are earmarked for private placement to identified bumiputra investors approved by the Ministry of International Trade and Industry.

As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 79 million shares by way of private placement to selected investors.

Based on the enlarged share capital of 790 million shares, Mestron is expected to have a market capitalisation of RM126.4 million and its listing is tentatively scheduled on June 18, 2019.

Trade worries, poor data slam European shares

LONDON, May 23 — European shares sank today as the latest round of US-China trade friction and a soft set of business surveys sapped investors’ risk appetite, while British Prime Minister Theresa May faced growing pressure to quit. By 0811 GMT,…

Greatech hopes to raise RM73m from IPO

KUALA LUMPUR: Greatech Technology Bhd, an industrial automation solutions provider, aims to raise RM73.05 million from its initial public offering (IPO), said CEO Tan Eng Kee.

Of the total proceeds, RM18 million would be utilised for business expansion and development and marketing activities, RM5 million for capital and research and development expenditure and RM36.55 million for working capital, he said.

Meanwhile, the remaining RM8.5 million would be used for repayment of bank borrowings and defrayment of IPO expenses, he said.

“We try to expand our footprint in the US market, so we are going to establish an office, engineering sales and services support in the country and small portion in China.

“We are looking at the east coast, Arizona and some in the area of Silicon Valley… we hope to start operations in the second half of this year,“ he told press conference after launching the company’s prospectus today.

Greatech Technology will be listed on the ACE Market of Bursa Malaysia Securities Bhd, offering 119.75 million shares, where 18.78 million of the shares are eligible for the public, with an IPO price of 61 sen per share.

The group is slated for listing on June 13, with a market capitalisation of RM381.86 million.

Asked on why the US market is selected, Tan said the country is always ahead in terms of technology innovation and believed its unemployment rate is much better than other regions.

“Majority of the expansion allocation will be set aside for US market,“ he said.

For the financial year ended Dec 31, 2018, the group recorded a revenue of RM219.58 million and tax after profit of RM31.72 million with approximately 90% of the revenue derived from overseas.

Its 2017 revenue amounted to RM93.91 million, higher than RM22.7 million it chalked in 2016 and RM21.39 million in 2015.

Tan said the group targeted between 10% and 15% growth in revenue this year, backed by a slew of new projects coming up from the new and existing clients.

Also present to witness the launch of the prospectus was Malaysian Technology Development Corporation (MTDC) CEO Datuk Norhalim Yunus who believed Greatech Technology’s excellent growth trajectory would easily push the IPO for premium performance during the listing.

“The group is in the right industry, namely in automation and robotics, besides solar, which currently expanding rapidly.

“I believe they have a bright future with a formidable list of clients,” he said.

The group received fundings from MTDC for Commercialisation of Research and Development Fund, Technology Acquisition Fund and Business Growth Fund.

Greatech to raise RM73.05m from IPO

KUALA LUMPUR, May 13 — Greatech Technology Bhd, an industrial automation solutions provider, aims to raise RM73.05 million from its initial public offering (IPO), said chief executive officer Tan Eng Kee. Of the total proceeds, RM18 million would…

Mitsui invests in Axiata Digital

PETALING JAYA: Axiata Group Bhd’s digital services arm, Axiata Digital Services Sdn Bhd has announced a strategic minority investment by Mitsui & Co Ltd, which establishes a pre-money enterprise value of US$500 million (RM2.07 billion) for its core digital business.

Its core digital business includes Boost, an e-wallet service in Malaysia with a presence in Indonesia; independent digital agency, (ada); and global API platform provider, Apigate.

“Mitsui will become a strategic shareholder and business partner at Axiata Digital’s core business verticals. The funds raised will be earmarked to fuel the next phase of growth for Axiata Digital’s core businesses,” the group said in a statement.

Axiata Digital CEO Mohd Khairil Abdullah said that its shift towards the three vertical areas has seen a strong business growth last year.

“With the investment from a partner like Mitsui, we hope to further accelerate these businesses while still being focused on distinct financial innovations for consumers at the bottom of the pyramid,” it said.

Mitsui’s IT and communications business unit managing officer and COO Masahiro Moriyasu said Axiata Digital is a powerful digital platform engaged in digital financial services, API and digital marketing.

“As an expansion of our strategic partnership with Axiata, we are very excited about this investment in Axiata Digital which follows our earlier investment in Smart Axiata in Cambodia, the country’s largest mobile telecom operator,” he said.

Previously, the company announced that it has signed to transfer the rest of its portfolio asset, dubbed Digital Ventures to an international investment fund, Pegasus 7 Ventures Pte Ltd managed by Gordian Capital at a valuation of US$140 million (RM580 million).

Combined with Axiata Digital’s core asset, its entire portfolio is valued at US$640 million (RM2.65 billion).

Maxis Q1 earnings fall 22% on lower wholesale revenue

PETALING JAYA: Maxis Bhd’s net profit for the first quarter ended March 31 fell 22% to RM409 million from RM523 million a year ago attributable to the decline in wholesale revenue.

The group said in a statement that its wholesale revenue was affected by the termination of the network sharing agreement, continued investment in FibreNation and mobilisation of the enterprise business growth opportunities.

Revenue for the quarter was flat at RM2.23 billion compared with RM2.24 billion in the previous year’s corresponding quarter.

The group has declared a first interim single-tier tax-exempt dividend of 5 sen per share, to be paid on June 27.

Maxis said there are a few key items impacting the group in 2019, including the impact of changes to a major wholesale network sharing agreement in the first and second quarters, dilution in fibre average revenue per user from the new competitive priced plans and the cost of customer migration initiative coupled with the increase in cost to serve.

It also foresees higher cost of business due to the sales and service tax. Maxis maintained its guidance for the financial year ending Dec 31.

Service revenue and earnings before interest, tax, depreciation and amortisation are expected to decline by low single-digit and mid single-digit respectively.

Core network capital expenditure is expected to be around RM1 billion plus capex supporting new growth opportunities in broadband and enterprise business (around RM1 billion over three years) while operating free cash flow (excluding upfront spectrum fee assignment) should remain at a similar level as year 2018.

The group is implementing a change in strategic direction, building on its strong mobile base to deliver its internal annual service revenue target in excess of RM10 billion by 2023.