PETALING JAYA (May 23): Steel pole maker Mestron Holdings Bhd, which is en route for an ACE Market listing on June 18, announced today it is aiming to raise funds of up to RM25.28 million from its initial public offering (IPO) to support its expansion for future business growth.
From the total proceeds raised from the IPO, RM13 million or 51.4% of the funds will be used to expand its main manufacturing facility and acquire more manufacturing machineries and equipment, according to the IPO prospectus launched today.
Meanwhile, RM5.18 million (20.5%) is earmarked for working capital to purchase raw materials such as steel plates and steel pipes to support its expansion in capacity, RM4 million (15.8%) to repay bank borrowings, and the remaining RM3.1 million (12.3%) will be used to defray listing expenses for the IPO.
Mestron's IPO will entail the issuance of up to 158 million 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 for selected investors by way of private placement, and
- 79 million new shares are earmarked for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry.
Based on the enlarged share capital of 790 million shares, Mestron is expected to have a market capitalisation of RM126.4 million.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the lPO exercise.