PETALING JAYA: Prestar Resources Bhd’s 51%-owned Tashin Holdings Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd, Malacca Securities Sdn Bhd and JF Apex Securities Bhd for its initial public offering (IPO) exercise.
The company is scheduled to be listed on the ACE Market of Bursa Malaysia by August this year.
Tashin said in a statement that M&A Securities is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO while Malacca Securities and JF Apex Securities are joint underwriters for the IPO.
Its IPO exercise involves the issuance of 59.33 million new shares representing 17% of the enlarged share capital.
Of the 59.33 million new shares, 17.45 million new shares will be made available to the Malaysian public via balloting; 8.72 million new shares for its eligible directors and employees as well as eligible directors and employees of the Prestar Group; 17.45 million new shares for the entitled shareholders of Prestar while the remaining 15.71 million new shares are earmarked for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
As part of its listing exercise, Tashin’s existing shareholders will make an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors approved by MITI by way of private placement.
Proceeds from the IPO will be used mainly for capital expenditure to support Tashin’s business expansion into the production of wire mesh products and to upgrade the existing steel processing line; to purchase a piece of industrial land for the construction of a new factory; to supplement the working capital which includes the purchase of raw materials and to be used to defray listing expenses for the IPO.
Besides organic growth in the past 18 years, Tashin has also ventured into processing (slitting and shearing) of steel coils into steel sheets, manufacturing of steel products comprising, steel pipes, flat bars, square bars, expanded metals, checkered plates and C Purlins as well as trading of steel products.
Its factory in Perai, Penang has an operating facility of about 224,280 tonnes per annum.