ACE Market-bound Glostrext to expand business ops

KUALA LUMPUR: ACE Market-bound Glostrext Bhd will be using the bulk of its listing proceeds to expand its business operations.

A geotechnical instrumentation service provider, the company mainly provides pile instrumentation and static load test services.

It also provides structural and ground instrumentation and monitoring services to construction projects, as well as completed buildings and infrastructure.

The group’s principal markets are Malaysia and Singapore.

Glostrext managing director Dr Lee Sieng Kai said the company would focus on promoting its off-site structural and ground instrumentation and monitoring services in Singapore using Glostrext WiNA platform.

“The company sees a big opportunity in Singapore.

“We have more than 30 years of track record in Malaysia and 14 years in Singapore,” he said at the company’s prospectus launch here yesterday.

Glostrext expects to raise RM20.1mil from the initial public offering and plans to use RM11.7mil (58.2%) to expand its structural and ground instrumentation and monitoring business into Singapore, as well as for working capital.

A further RM1.8mil (9%) of the proceeds will be used to fund the research and development activities to further enhance the automation and accuracy of the group’s service offerings.

The remainder of the proceeds will be used to repay bank borrowings amounting to RM3.3mil (16.4%) and to defray the estimated listing expenses of RM3.3mil (16.4%).