Glostrext managing director Dr Lee Sieng Kai (fourth from left) with members of the board of directors, M&A Securities managing director of corporate finance Datuk Bill Tan (fifth from left) and other representatives from M&A Securities
KUALA LUMPUR: Glostrext Bhd
is aiming to raise RM20.1mil in proceeds from its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.
In a statement, the geotechnical instrumentation and testing specialist said it plans to use RM11.7mil or 58.2% of the proceeds to expand its structural and ground instrumentation and monitoring business into Singapore, as well as for working capital.
A further RM1.8mill (9%) of the proceeds will be used to fund the research and development activities to further enhance the automation and accuracy of its service offerings.
The remainder of the proceeds will be used to repay bank borrowings amounting to RM3.3mil (16.4%) and to defray the estimated listing expenses of RM3.3mil (16.4%).
According to the company, its pile instrumentation and static load test services are mainly provided to customers in Singapore and Malaysia, while its structural and ground instrumentation and monitoring services are mainly provided to customers in Malaysia.
Glostrext managing director Dr Lee Sieng Kai said the company will focus on promoting its off-site structural and ground instrumentation and monitoring services in Singapore using the Glostrext WiNA platform.
He said the Glostrext WiNA is a web-based platform developed in-house that leverages a series of sensors including Internet of Things (IoT)-enabled sensors and data visualisation software for remote and real time structural and ground monitoring.
“The expansion plan is also in line with the requirements on structural and ground instrumentation and monitoring for all construction of buildings and infrastructure in Singapore which was made mandatory in 2008 under the Building Control Regulations 2003, as we believe that we will be well-positioned to benefit from these requirements to secure sales and further grow our business in Singapore," said Lee.
He added that the company aims to offer the services to completed and on-going construction projects for commercial buildings, residential buildings, industrial buildings and infrastructures.
Glostrext is issuing 105.8 million new shares, representing 26% of the enlarged share capital at an issue price of 19 sen per share.
Of the 105.8 million issue shares, 20.4 million issue shares will be made available to the Malaysian public via balloting, 10.2 million issue shares for its eligible directors and employees as well as persons who have contributed to the success of Glostrext under Pink Form allocations, while the remaining 75.3 million issue shares will be reserved for private placement to selected investors.
As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 16.3 million existing shares to selected investors by way of Private Placement.
Based on the enlarged share capital of 407 million shares, Glostrext is expected to have a market capitalisation of RM77.3mil upon listing.
The IPO is open for subscription from today to Aug 2, 2023.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
