KUALA LUMPUR (July 7): Master Tec Group Bhd is eyeing an ACE-Market listing with an initial public offering (IPO) involving a public issue of 158.10 million new shares and offer for sale of 127.50 million offer shares.   

Proceeds from the IPO are expected to raise capital expenditure for the construction of new MV power cable manufacturing plants, as well as purchase of new machineries and equipment. 

With an enlarged number of shares of 1.02 billion, the group has yet to announce its IPO price and listing date, according to its prospectus on Bursa Malaysia.   

Other utilisation of the proceeds include general working capital and listing costs for the exercise. 

The 158.10 million new shares include 51 million made available for the Malaysian public, along with 2.14 million shares for its eligible directors and employees.   

It also includes 104.96 million shares by way of private placement to selected investors. 

The offer for sale of 127.50 million shares was by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti). 

Master Tec Group is principally involved in the manufacturing and distribution of power cables, control and instrumentation cables, and other related products.   

It is also involved in the trading of power cables, fibre optic cables, and other related products.    

In terms of dividend, the company targeted a payout ratio of 30% of its profit after tax (PAT) attributable to the owners of the group each financial year on a consolidated basis, after taking into account its working capital requirements.   

Its net profit stood at RM19.55 million for the financial year ended 2022 (FYE2022), higher than RM5.53 million in FYE2021 and RM5.26 million in FYE2020. 

Revenue for FYE2022 stood at RM362.69 million versus RM275.88 million in FYE2021. It was also higher than RM162.31 million in FYE2020.   

Its PAT margin increased to 5.39% in FYE2022, from 2.01% in FYE2021. Its PAT margin for FYE2020 was 3.24%. 

SJ Securities Sdn Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for Master Tec Group Bhd’s ACE-Market listing.