KUALA LUMPUR: Leform Bhd
has entered into a share subscription agreement (SSA) with NST Trading Malaysia Sdn Bhd (NSTM), a wholly owned subsidiary of Nippon Steel Trading Corporation, for the subscription of new shares under the group’s ongoing private placement exercise.
The steel pipes and flat steel products specialist, in a statement, said that under the SSA, NSTM will subscribe for 148.1 million new ordinary shares in Leform pursuant to the group’s private placement of up to 10% of its existing issued share capital.
The subscription price of RM0.1688 per share was determined based on a discount to the five-day volume weighted average market price prior to the price-fixing date, in accordance with the ACE Market Listing Requirements of Bursa Malaysia Securities Bhd.
Upon completion, the private placement is expected to raise approximately RM25mil.
The strategic investment marks a significant milestone for Leform as it strengthens its partnership with an internationally recognised steel trading group, potentially opening avenues for deeper collaboration across supply chain integration, product distribution, and regional market development.
“The participation of NSTM represents a strong vote of confidence in Leform’s business fundamentals and long-term growth prospects.
“This strategic investment not only strengthens our capital base but also creates potential synergies that may enhance our supply chain resilience and market reach,” Leform managing director Law Kok Thye said.
The proceeds from the private placement are expected to be utilised primarily for the purchase of raw materials, enabling the group to stock products in advance of orders, improve delivery efficiency, and procure steel materials ahead of anticipated price increases to enhance gross profit margins.
Looking ahead, Leform remains cautiously optimistic about the steel industry outlook, supported by Malaysia’s ongoing infrastructure development initiatives and regional industrial expansion.
