KUALA LUMPUR (Dec 12): Cables and wires manufacturer Master Tec Group Bhd, which targets to float its shares on the ACE Market of Bursa Malaysia by the first quarter of 2024, has signed an underwriting agreement with SJ Securities Sdn Bhd to underwrite a total of 53.144 million new shares.
Master Tec’s initial public offering (IPO) entails the public offering of 285.6 million ordinary shares, comprising a public issuance of 158.1 million new shares and an offer-for-sale of 127.5 million existing shares, which collectively represent 28% of the group’s enlarged issued share capital of 1.02 billion shares.
Of the 158.1 million new shares, 51 million new shares will be made available for application by the Malaysian public and 2.144 million new shares will be made available for application by eligible directors and employees of the group.
The remaining 104.956 million new shares will be allocated by way of private placement to selected investors.
There is also an offer-for-sale of 127.5 million existing shares which will be allocated by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Founded in 2006, Master Tec is primarily involved in the manufacturing and distribution of a wide range of low voltage power cables, control and instrumentation cables, as well as larger sizes of solar direct current (DC) power cables.
The group is also involved in the trading and distribution of medium voltage (MV) power cables, fibre optic cables and smaller sizes of solar DC power cables, to cater to various end-user markets.
Master Tec operates three manufacturing plants in Alor Gajah, Melaka, with a total production capacity of 9,500 tonnes of wires and cables per annum, of which 4,000 tonnes are copper-cored and 5,500 tonnes are aluminium-cored.
According to Master Tec managing director Datuk Lau Kim San, the group is ready to take advantage of the vast opportunities in the electricity transmission, distribution and various end-user application space in Malaysia, Thailand, Singapore and Brunei.
Master Tec’s customer portfolio spans from power utility companies, such as Tenaga Nasional Bhd, Sarawak Energy Bhd and Sabah Electricity Sdn Bhd, to electrical wholesalers, mechanical and electrical contractors and project owners.
“With the new funding that Master Tec is expecting to raise from its IPO exercise, we plan to utilise parts of the IPO proceeds to construct two new manufacturing plants in Alor Gajah to venture into the manufacturing of MV power cables.
"We aim to increase our annual production capacity to produce approximately 3,600 tonnes of MV power cables per year and we target to commence the production of MV power cables by the fourth quarter of 2024,” said Lau in a statement on Tuesday (Dec 12).
SJ Securities is Master Tec’s principal adviser, sponsor, underwriter and placement agent for the company’s proposed IPO and ACE Market listing.
SJ Securities MD and chief executive officer Datuk Ahmad Azman said Master Tec has a competitive edge and a firm stronghold in the wires and cables industry, especially in relation to manufacturing and distribution of high-performance wires and cables.
“With an experienced management team, we believe Master Tec has a solid foundation for its future growth and will continue to excel in the long term. We look forward to continuing our partnership with Master Tec in its next stage of growth,” he added.