KUALA LUMPUR: Aluminium products manufacturer Winstar Capital Bhd, en route to a listing on Bursa Malaysia’s Ace Market on Dec 19, 2024, aims to raise RM19.79 million through its initial public offering (IPO).
The company noted that the IPO is priced at 35 sen per share and involves the issuance of 73.95 million shares, comprising 56.55 million new shares and 17.40 million existing shares offered for sale, representing 25.5 per cent of the company’s enlarged issued share capital of 290 million shares.
In a statement, the company said that of the proceeds, RM9.55 million (48.25 per cent) will be used to purchase new aluminium extrusion press machines and equipment, RM6.24 million (31.54 per cent) is allocated for working capital requirements, and RM4.0 million (20.21 per cent) is set aside for listing expenses.
"Of the 56.55 million new shares, 14.50 million will be available for application by the Malaysian public, while 15.95 million are reserved for eligible directors, employees, and contributors to the group’s success.
"The remaining 26.10 million new shares will be offered through a private placement to selected investors," the company shared.
Upon listing, Winstar Capital is expected to achieve a market capitalisation of RM101.50 million based on its enlarged share capital.
Executive director and chief executive officer Vincent Chua Boon Hong said the company plans to use part of the IPO proceeds to acquire four additional aluminium extrusion lines with a combined capacity of 8,580 tonnes annually, to be installed at its factory in Ijok, Selangor.
He said the new lines are expected to increase the company's total manufacturing capacity from 6,705 tonnes to 15,285 tonnes per annum.
"The first two lines are expected to be installed by the second quarter of 2025, with the remaining two scheduled for installation by the second quarter of 2026," Chua said during the company’s prospectus launch today.
Chua highlighted that Winstar Capital ventured into the renewable energy sector in 2023 by offering solar PV system installation services through its subsidiary, Winstar Solar Sdn Bhd, and began making aluminium solar PV mounting structures in early 2024.
"This horizontal expansion positions us to supply PV mounting structures and provide installation services to engineering, procurement, construction, and commissioning (EPCC) players in Malaysia," Chua said.
He added that the diversification aims to establish the company as a key supplier in the solar energy industry while complementing its aluminium manufacturing business.
Applications for the public issue are open from today until Dec 3, 2024, at 5 pm.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO. - Bernama
