Mestron retail offering oversubscribed by 17.53 times

From left: Gary Ting, head of corporate finance of M&A Securities Sdn Bhd; Gary Loon, executive director of Mestron Holdings Bhd; Por Teong Eng, managing director of Mestron Holdings Bhd; Datuk Bill Tan, managing director of corporate finance of M&A Securities Sdn Bhd; and Mr Danny Wong, deputy head of corporate finance of M&A Securities.

KUALA LUMPUR: En route to its debut on Bursa Malaysia's ACE Market on June 18, the retail portion of Mestron Holdings Bhd's initial public offering has been oversubscribed by 17.53 times

In a statement, the steel pole manufacturer said a total of 5,720 applications for 731.97 million new shares valued at RM117.12mil were received for the retail offering of 39.5 million new shares.

Meanwhile, 8.75 million new shares allocated to eligible directors and employees were fully subscribed while the allotment of 188.75 million shares for selected and Bumiputera investors had been placed out.

All notices of allotment for these shares will be mailed to successful applicants on or before June 17.

Mestron expects to raise RM25.28mil from the issue of 158 million new shares at 16 sen per share from the exercise.

About RM13mil, or 51.4% of the proceeds, will go towards expanding its main manufacturing facility and to acquire more manufacturing machinery and equipment.

Of the balance, RM5.18mil will go towards working capital, RM4mil to repay bank borrowings and RM3.1mil to defray listing expenses.

“I am confident that Mestron will grow stronger, better and more competitive and we will strive to ensure that we do not disappoint our shareholders and investors who placed their trust in us,” said Mestron managing director Por Teong Eng.