KUALA LUMPUR: Newly listed Mestron Holdings Bhd succumbed to profit taking in early trade Thursday as investors decided to pocket gains after its initial public offering (IPO).
The steel pole manufacturer fell 3.13%, or 0.5 sen to 15.5 sen with over 16 million shares traded.
Mestron raised RM25.28mil from the issue of 158 million new shares at 16 sen per share from the exercise.
About RM13mil, or about half of the proceeds would be used to expand its main manufacturing plant and to purchase more machinery and equipment.
The retail portion was oversubscribed by 17.53 times. There were 5,720 applications for 731.97 million new shares valued at RM117.12mil for the retail portion.
Mestron managing director Por Teong Eng said the company would leverage on the government’s push for broadband network convergence to boost its revenue stream from specialty poles business.
He said broadband network convergence (including 5G technology) would create demand for specialty pole such as high mast and telecommunication monopoles.