PETALING JAYA: Mestron Holdings Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 17.53 times.
The steel pole maker is set to be listed on the ACE Market of Bursa Malaysia on June 18.
A total of 5,720 applications for 731.97 million new shares, valued at RM117.12 million were received from the Malaysian public for 39.5 million new shares made available for public subscription.
In addition, the 8.75 million new shares allocated to the eligible directors and employees of the company have been fully subscribed. Meanwhile, the 188.75 million shares allocated for private placement have also been fully placed out.
Mestron expects to raise a total of RM25.28 million from the public issue of 158 million new shares a price of 16 sen per share.
Of the IPO proceeds, some RM13 million (51.4%) will be used to expand its main manufacturing facility and acquire more manufacturing machineries and equipment for future business growth.
Some RM5.18 million (20.5%) has been earmarked working capital to acquire raw material supporting its capacity expansion; RM4 million (15.8%) will be used to repay bank borrowings and the remaining RM3.10 million to defray listing expenses for the IPO.