ACE Market-linked Winstar Capital targets RM19.79 million in IPO

KUALA LUMPUR: Aluminum products maker Winstar Capital Bhd, headed for 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, including 56.55 million new shares and 17.40 million existing shares offered for sale, representing 25.5 percent of the company’s enlarged share capital of 290 million. actions.

In a statement, the company said that of the proceeds, RM9.55 million (48.25 percent) will be used to purchase new aluminum extrusion press machines and equipment, RM6.24 million ( 31.54 percent) will be allocated for working capital requirements, and RM4.0 million (20.21 percent) is earmarked for registration 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 directors, employees and eligible contributors to the success of the group.

“The remaining 26.10 million new shares will be offered through a private placement to selected investors,” the company said.

Upon listing, Winstar Capital is expected to achieve a market capitalization of RM101.50 million based on its enlarged share capital.

Executive director and CEO Vincent Chua Boon Hong said the company plans to use part of the proceeds from the IPO to acquire four additional aluminum extrusion lines with a combined capacity of 8,580 tonnes per year , which will be installed at its factory in Ijok, Selangor.

He said the new lines are expected to increase the company’s total manufacturing capacity by 6,705 tonnes to 15,285 tonnes per year.

“The first two lines are expected to be installed by the second quarter of 2025, and the remaining two lines are expected to be installed by the second quarter of 2026,” Chua said at 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 started manufacturing mounting structures aluminum photovoltaic solar panels 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,” said Chua.

He added that the diversification aims to make the company a key supplier in the solar energy sector while complementing its aluminum manufacturing operations.

Applications for the public broadcast are open from today until December 3, 2024 at 5 p.m.

TA Securities Holdings Bhd is the lead advisor, sponsor, sole underwriter and sole placement agent for the IPO. – Bernama