Steel pole maker Mestron floats shares en route to ACE Market listing

(From left): M&A Securities head of corporate finance Gary Ting, M&A Securities managing director of corporate finance Datuk Bill Tan, Mestron managing director Por Teong Eng and Mestron executive director Gary Loon. Photo by Mestron

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KUALA LUMPUR (April 30): Steel pole maker Mestron Holdings Bhd has announced an initial public offering (IPO) of 158 million new shares en route to a listing on Bursa Malaysia's ACE Market.

The 158 million shares represent 20% of its enlarged share capital, the group said in a statement today.

Of this, 39.5 million shares will be made available to the Malaysian public, 8.75 million shares to the group's eligible directors and employees and 30.75 million shares to selected investors by way of private placement.

"The remaining 79 million new shares are earmarked for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry," said Mestron.

The money raised, it said, will be used to fund the group's manufacturing facility's expansion plan, acquire more manufacturing machinery and equipment and repay bank borrowings.

Mestron said that in conjunction with the IPO, it signed an underwriting agreement with M&A Securities Sdn Bhd today.

M&A Securities will underwrite the 48.25 million shares made available for the Malaysian public, and Mestron's eligible directors and employees.

"The signing of the agreement not only reiterates the underwriter's confidence in Mestron, but also takes the company a step closer towards listing on Bursa Securities," Mestron managing director Por Teong Eng said in the statement.

"The listing exercise would strengthen Mestron's financial position as we embark on the next phase of our business expansion plans," he added.

Through its wholly-owned subsidiaries, Mestron manufactures steel poles comprising standard street light poles, decorative light poles and specialty poles. It also sells outdoor lighting products.

It has supplied steel poles to various high-profile construction projects such as the East Klang Valley Expressway project, Coastal Highway Southern Link project, LRT Ampang line extension project, MRT1 project and the Bukit Jalil Sport Complex refurbishment project.