KUALA LUMPUR (July 27): ACE Market-bound geotechnical instrumentation and testing specialist Glostrext Bhd expects to raise RM20.1 million under its listing exercise.
In a statement on Thursday (July 27), the company said it plans to use RM11.7 million (58.2%) raised from the initial public offering (IPO) to expand its structural and ground instrumentation and monitoring business into Singapore, as well as for working capital.
As at June 30, 2023, Glostrext’s pile instrumentation and static load test services were mainly provided to customers in Singapore and Malaysia, while its structural and ground instrumentation and monitoring services were mainly provided to customers in Malaysia.
Under the listing exercise, Glostrext is issuing 105.8 million new shares, representing 26.0% of the enlarged share capital, at an issue price of 19 sen per share.
Of the 105.8 million issue shares, 20.4 million issue shares will be made available to the Malaysian public via balloting, followed by 10.2 million issue shares for its eligible directors and employees as well as persons who have contributed to the success of Glostrext under Pink Form Allocations, while the remaining 75.3 million issue shares are reserved for private placement to selected investors.
As part of the listing exercise, the existing shareholders of the company will also make an offer for sale of 16.3 million existing shares to selected investors by way of private placement.
Glostrext managing director Dr Lee Sieng Kai said the company will focus on promoting its off-site structural and ground instrumentation and monitoring services in Singapore using the Glostrext WiNA platform, where such offering is in line with the current trend, as many businesses and companies seek automation to increase operational efficiency and reduce reliance on manpower.
“We will leverage our success and existing presence in Singapore to expand our service offerings in the country by offering structural and ground instrumentation and monitoring services using the Glostrext WiNA platform as part of our business growth and expansion plans.
“The expansion plan is also in line with the requirements of structural and ground instrumentation and monitoring for all construction of buildings and infrastructure in Singapore, which was made mandatory in 2008 under the Building Control Regulations 2003, as we believe that we will be well positioned to benefit from these requirements to secure sales and further grow our business in Singapore,” he said.
Lee said the company targets to provide such services to completed and ongoing construction projects for commercial buildings, residential buildings, industrial buildings and infrastructure.
“With our IPO proceeds, Glostrext will have the necessary resources to facilitate this business expansion. We will purchase the required instruments and equipment for the provision of such services,” he added.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.