Group managing director Lim Choon Teik said that the funds, to be raised from its initial public offering (IPO) exercise, would be used for setting up a factory in Seberang Prai, upgrade the existing steel processing line, purchase the necessary machinery, and support its business expansion into the manufacturing of wire mesh.
“We plan to use RM4.1mil from the IPO proceeds to acquire five new wire mesh production lines with a combined effective production capacity of 24,000 MT per annum.
“We expect to commence the production of wire mesh upon completion of the construction of the new factory by 2021,” Lim said.
According to Lim, the addition of wire mesh in our manufactured product offerings will allow the group to further improve its profitability and strengthen our customer base, which in turn will enhance our competitive position.
Under the listing exercise, Tashin is issuing 59.33 million new shares at RM0.58 per share of which 17.45 million new shares will be made available to the public via balloting, 8.72 million new shares for its eligible directors and employees as well as eligible Prestar Group’s directors and employees, 17.45 million new shares for Prestar’s entitled shareholders, while the remaining 15.71 million new shares are earmarked for private placement.
As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 55.49 million shares to selected investors.
Based on the enlarged share capital of 348.99 million shares, Tashin is expected to have a market capitalisation of RM202.41mil.
Tashin is an associate company of Prestar Resources Bhd , a main-board investment holding company with subsidiary companies mainly engaged in the steel-processing and steel-products manufacturing activities with factories in Malaysia and Vietnam.
Source: The Star