Friday 14 Jun 2024
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KUALA LUMPUR (Nov 8): Cable and wire manufacturer Master Tec Group Bhd has obtained Bursa Malaysia's approval to launch an initial public offering (IPO) on the ACE Market, and targets to list by the first quarter of 2024.

The company's IPO involves 285.6 million shares, comprising a public issue of 158.1 million new shares and an offer for sale of 127.5 million existing shares, which collectively represent 28% of its enlarged issued share capital of 1.02 billion shares.

Chief executive officer Tee Kok Hwa said the proceeds raised from the IPO would be used to build two manufacturing plants in Melaka.

“With the new funding that Master Tec is expecting to raise from the group’s IPO exercise, we plan to utilise parts of the IPO proceeds to construct two new manufacturing plants in Alor Gajah, Melaka to venture into the manufacturing of medium-voltage (MV) power cables,” Tee said in a statement on Wednesday.

Tee said that the group aims to increase annual production capacity to approximately 3,600 tonnes of MV power cables per year, and plans to commence production in the fourth quarter of 2024.

“This expansion will enable the group to market its products to capital-intensive manufacturing industries that demand higher-voltage electricity power transmission, such as automotive plants, pulp and paper mills, semiconductor fabrication plants, steel mills and chemical plants, on top of power utility companies,” he said.

Founded in 2006, Master Tec manufactures and distributes a wide range of low-voltage power cables, control and instrumentation cables, and larger-sized solar direct current power cables.

Its diversified portfolio of customers spans power utility companies like Tenaga Nasional Bhd, Sarawak Energy Bhd and Sabah Electricity Sdn Bhd, to electrical wholesalers, mechanical and electrical contractors, and project owners.

Additionally, Master Tec also aims to grow its business by increasing its export sales revenue to main priority markets such as Brunei, Singapore and Thailand.

Of the 158.1 million new shares, 51 million shares will be made available for application by the Malaysian public, while 2.144 million shares will be allocated to eligible directors and employees.

The remaining 104.95 million shares will be allocated for private placement to selected investors. For the existing 127.5 million shares offered for sale, these will be allocated for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

SJ Securities Sdn Bhd is the IPO’s principal adviser, sponsor, underwriter and placement agent.

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