Friday 29 Mar 2024
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KUALA LUMPUR (July 29): Prestar Resources Bhd’s 51%-owned steel products unit Tashin Holdings Bhd recorded a net profit of RM3.50 million or 1.21 sen per share, on the back of RM62.78 million revenue in the first quarter ended March 31, 2019 (1QFY19).

In a statement today, Tashin’s managing director Lim Choon Teik said the net profit was attributable to the group’s manufacturing segment’s performance.

According to the group’s prospectus, Tashin reported a RM11.28 million net profit and RM260.55 million revenue in FY18.

Moving forward, Lim said Tashin has put in place a series of future plans that are focused on expanding the group’s steel manufacturing activities.

He said Tahsin will purchase machinery and equipment to support its business expansion into the manufacturing of wire mesh and to upgrade the existing steel processing line, in order to reduce its dependency on manual labour and improve the handling and packing speed for steel pipes and slit coils.

Tashin, which is slated to be listed on the ACE Market in August, saw an oversubscription rate of 5.42 times for the 17.45 million new shares that were made available for the Malaysian public.

The 8.72 million new shares for its eligible directors and employees, as well as for the eligible directors and employees of the Prestar Group, had also been fully subscribed.

In addition, the placement agent has confirmed that the 71.19 million shares made available for application by way of private placement to selected investors and Bumiputera investors approved by the Ministry of International Trade and Industry (Miti), have been fully placed out.

“The company is encouraged by the response, which is testimony to the public’s confidence in the inherent strengths of Tashin. We will strive to ensure that we do not disappoint our shareholders and investors who placed their trust in us,” Lim said.

Tashin had issued 59.33 million new shares at 58 sen per share, of which 17.45 million shares were made available to the Malaysian public via balloting; 8.72 million shares for its eligible directors and employees, as well as Prestar’s eligible directors and employees; 17.45 million shares for Prestar’s entitled shareholders, while the remaining 15.71 million shares are earmarked for private placement to Bumiputera investors approved by Miti. 

As part of its listing exercise, the existing shareholders of the company made an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors, approved by MITI by way of private placement.

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