ACE Market-bound Tashin eyes RM34m IPO to fund expansion

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KUALA LUMPUR (June 25): Tashin Holdings Bhd, en route to list on the ACE Market of Bursa Malaysia on Aug 1, expects to raise RM34.41 million to build a new factory.

In a statement today, Tashin said more than half or RM17.55 million of the proceeds from the initial public offering (IPO) will be used to purchase an industrial land in Seberang Perai, Penang, for the construction of a 90,000 sq ft factory.

Another RM7.7 million (22.38%) will be used 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%) for working capital and the remaining RM3.2 million (9.3%) to defray listing expenses. 

Tashin managing director Lim Choon Teik said the new factory is intended to house the company's 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 new shares will be made available to the Malaysian public via balloting; 8.72 million new shares for eligible directors and employees, as well as eligible directors and employees of the Prestar Group; 17.45 million new shares for the entitled shareholders of Prestar and the remaining 15.71 million new shares are earmarked for private placement to selected bumiputera investors approved by the Ministry of International Trade and Industry (Miti).  

As part of its listing exercise, the existing shareholders of the company 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.

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.