Tashin to raise RM34.4m from ACE Market listing

From left are Gary Ting; Datuk Wong Gian Kui; Datuk Bill Tan; Datuk Toh Yew Peng; Lim Choon Teik; Kong Ming Ming and Raymond Yap.

KUALA LUMPUR: Tashin Holdings Bhd expects to raise RM34.41mil as it seeks to list on the ACE Market of Bursa Malaysia Securities.

Under the listing exercise, Tashin – which is involved in the processing of steel coil -- is issuing 59.33 million new shares at 58 sen per share. 

Of the 59.33 million new shares, it will offer for sale 17.45 million new units to the public; 8.72 million new shares for its eligible directors and employees and of Prestar Group; 17.45 million units for Prestar’s entitled shareholders while the remaining 15.71 million new shares will be placed out.

 The existing shareholders will place out 55.49 million shares to selected investors and selected Bumiputera investors.

Based on the enlarged share capital of 348.99 million shares, Tashin is expected to have a market capitalisation of RM202.41mil.

Tashin plans to use 51% of the listing proceeds or RM17.55mil to purchase a piece of industrial land in Seberang Perai, Penang to build a 90,000sq ft factory.

 It also use 22.3% or RM7.70mil to purchase machinery and equipment to manufacture wire mesh and to upgrade the steel processing line; RM5.96mil (17.32%) as general working capital and the remaining RM3.20mil (9.30%) to defray listing expenses. 

Speaking at the launch of the prospectus, Tashin managing  director Lim Choon Teik said the new factory would be for the manufacturing line for flat and square bars and wire mesh.

“We believe the addition of wire mesh in our manufactured product offerings will allow us to further improve our profitability and strengthen our customer base, which in turn will enhance our competitive position,” he added.

The IPO is open for subscription until July 19  and it is tentatively scheduled to be listed on Aug 1.

M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO while Malacca Securities Sdn Bhd and JF Apex Securities Bhd are joint underwriters.

Among those present at the launch of the prospectus were M&A Securities Sdn Bhd’s head of corporate finance Gary Ting; managing director of corporate finance Datuk Bill Tan; Insas Bhd director Datuk Wong Gian Kui; non-independent non-executive director of Tashin and group managing director Prestar Resources Bhd Datuk Toh Yew Peng; Tashin managing director Lim Choon Teik; head of dealing, equities/private, executive director of JF Apex Securities Bhd Kong Ming Ming and assistant vice president, dealing of Malacca Securities Sdn Bhd Raymond Yap.