KUALA LUMPUR: Steel products manufacturer Tashin Holdings Bhd, which will be listed on the ACE Market on Aug 1, posted net profit of RM3.5mil in the firstr quarter ended March 31, 2019.
The company said on Monday the earnings were on the back of RM62.78mil in revenue while its earnings per share stood at 1.21 sen.
Its managing director Lim Choon Teik said the strong Q1 performance was underpinned by the maufacturing division.
For FY2018, Tashin reported net profit of RM11.28mil on revenue of RM260.55mil.
On the outlook for Tashin, Lim said it was focused on expanding the steel manufacturing activities.
This would see it purchasing machinery and equipment as it expands into manufacturing wire mesh. It would also increase the handling and packing speed for steel pipes and slit coils.
Tashin, which offered 17.45 million new shares under its listing exercise, recorded an over subscription rate of 5.42 times.
The 8.72 million new shares for its eligible directors and employees as well as eligible directors and employees of the Prestar Group were also fully subscribed.
Another 71.19 million shares had also been placed out to selected investors and Bumiputera investors.
Under the listing exercise, Tashin issued 59.33 million new shares at 58 sen per share.
The existing shareholders also made an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors.
M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO. Malacca Securities Sdn Bhd and JF Apex Securities Bhd are joint underwriters for the IPO.