M&A Securities, Malacca Securities, JF Apex to underwrite Tashin’s IPO

This article first appeared in The Edge Financial Daily, on May 15, 2019.
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KUALA LUMPUR: Penang-based steel player Tashin Holdings Bhd, to be listed on Bursa Malaysia’s ACE Market by August, expects its initial public offering (IPO) to further strengthen its financial position as it embarks on the next phase of its business expansion plans.

The company, a unit of Prestar Resources Bhd, signed an underwriting agreement yesterday with M&A Securities Sdn Bhd, Malacca Securities Sdn Bhd and JF Apex Securities Bhd in conjunction with the IPO.

M&A Securities is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO. Malacca Securities and JF Apex Securities are the joint underwriters.

Under the agreement, the three brokerages will underwrite 43.62 million new shares of the total issuance of 59.33 million new shares in Tashin.

“I believe this listing would enable Tashin to strengthen its position in the steel processing and manufacturing industries as it charts its future growth story,” Tashin managing director Lim Choon Teik said in a statement yesterday.

Proceeds from the IPO will be used mainly for capital expenditure to support the group’s expansion into the production of wire mesh products and upgrade the existing steel processing line; purchase land for a new factory; for working capital which includes buying raw materials; and defray expenses for the listing.

Of the 59.33 million new shares or 17% of the company’s enlarged share capital, 17.45 million new shares are allocated for the Malaysian public via balloting; 8.72 million new shares for its eligible directors and employees, as well as those of Prestar; 17.45 million new shares for entitled shareholders of Prestar; and the remaining 15.71 million new shares for a private placement to bumiputera investors approved by the ministry of international trade and industry (Miti).

As part of the listing, the company’s existing shareholders will also make an offer for sale of 55.49 million shares to selected investors and bumiputera investors approved by Miti via a private placement.

“As a listed entity, we hope to further increase confidence among our investors, stakeholders and customers while we continue to work towards enhancing our company’s long-term value by providing quality products across our steel processing and manufacturing divisions,” Lim added.