PETALING JAYA: Master TEC Group Bhd
has obtained approval to list on the ACE Market of Bursa Malaysia by the first quarter of 2024.
The group is mainly involved in the manufacturing and distribution of a wide range of high-performance low voltage, control and instrumentation as well as solar direct current cables.
Master Tec is also involved in the trading and distribution of a wide range of medium voltage power and fibre optic cables to cater for various end-user markets.
Chief executive officer Tee Kok Hwa said the group planned to utilise parts of the initial public offering (IPO) proceeds to build two new manufacturing plants in Alor Gajah, Melaka to venture into the manufacturing of medium voltage (MV) power cables.
“We aim to increase our annual production capacity to produce 3,600 tonnes of MV power cables per year and we target to commence the new MV power cables production by the fourth quarter of 2024,” he said in a statement.
The expansion would enable the company to market its products to capital-intensive manufacturing industries that demand higher voltage of electricity power transmission, such as automotive plants, semiconductor fabrication plants, and chemical plants, on top of power utility companies.
“We also aim to increase our export sales revenue by focusing on our existing export markets such as Brunei, Singapore and Thailand to grow our business while aiming to capture a larger market share regionally going forward,” he said.
Managing director Datuk Lau Kim San said the group was pleased with the approval given by the local stock exchange after having diligently assessed and considered the merits of its application.
“The approval not only reinforces the authority’s confidence in us but also takes us a step closer to our IPO journey.
“This comes at an opportune time as we are ready to take advantage of the vast opportunities in the electricity transmission, distribution and end-user application space in Malaysia and the surrounding countries,” he said.
Meanwhile, the cable manufacturer said its IPO would entail 285.6 million shares, comprising a public issue of 158.1 million, and an offer for sale of 127.5 million shares which collectively represent 28% of the group’s enlarged issued share capital of 1.02 billion ordinary shares.
Out of 158.1 million shares, 51 million new shares will be made available for application by the Malaysian public; and 2.144 million new shares will be made available for application by eligible directors and employees of the group.
The remaining 104.956 million new shares will be allocated for private placement to selected investors.
The existing 127.5 million shares offered for sale will be allocated for private placement to bumiputra investors approved by the Investment, Trade and Industry Ministry.
