From left are Gary Ting, head of corporate finance of M&A Securities; Datuk Bill Tan, managing director of corporate finance of M&A Securities; Por Teong Eng, Mestron managing director and Gary Loon, executive director of Mestron.
KUALA LUMPUR: Steel pole manufacturer Mestron Holding Bhd will issue 158 million new shares or 20% of the enlarged share capital under its flotation exercise.
The company had on Tuesday signed an underwriting agreement with M&A Securities Sdn Bhd under its proposed listing on the ACE Market of Bursa Malaysia
Of the 158 million new shares, 39.50 million shares will be made available to the Malaysian public; 8.75 million shares to its eligible directors and employees and 30.75 million new shares will be placed out.
The remaining 79 million new shares will be placed out to identified Bumiputera investors approved by the Ministry of International Trade and Industry.
As part of its listing exercise, the shareholders will also offer for sale 79 million shares by way of private placement to selected investors.
M&A Securities will underwrite 48.25 million new shares made available to the public and its eligible directors and employees.
Mestron managing director Por Teong Eng and its executive director Gary Loon signed on behlaf of the company while M&A Securities was represented by its managing director of corporate finance, Datuk Bill Tan.
Proceeds from the IPO will be used mainly to expand its main manufacturing plant and purchase machinery, repayment of bank borrowings and to defray listing expenses for the IPO.
Mestron is scheduled to be listed on the ACE Market of Bursa Securities by June.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.
Mestron manufactures steel poles comprising standard street light poles, decorative light poles and specialty poles, as well as trading of outdoor lighting products.
It supplies the poles to mechanical and electrical contractors, steel pole suppliers, highway concessionaires, construction and engineering companies, as well as specialised contractors in the telecommunication, oil and gas and mining industries.
Mestron has supplied steel poles to the East Klang Valley Expressway project, Coastal Highway Southern Link project, LRT Ampang line extension project, Sungai Buloh-Kajang MRT project and Bukit Jalil Sport Complex refurbishment project.
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