KUALA LUMPUR (Oct 29): Aluminium products manufacturer Winstar Capital Bhd said on Tuesday it has secured an approval from Bursa Malaysia for its ACE Market listing.
The company, backed by listed renewable energy firm Sunview Group Bhd (KL:SUNVIEW), is aiming for a listing by the fourth quarter of 2024, the company said in a statement. Selangor-based Winstar had filed its draft prospectus in July.
“The approval takes us a step closer to our IPO (initial public offering) journey to become a public listed entity on the ACE Market,” said Winstar chief executive officer Vincent Chua. “This comes at an opportune time as we are ready to take advantage of the vast opportunities in the renewed optimism and vibrancy in Malaysia’s construction industry and property markets.”
Winstar mainly manufactures aluminium profiles and ladders, which make up 57% of its revenue, and is also involved in trading and distribution of building materials, which provides 42% to its annual revenue. The company also installs solar panels, a business which the company considers non-core.
The proposed IPO involves a public issue of 56.55 million new shares and an offer for sale of 17.4 million existing shares at a price to be determined later, according to the draft prospectus posted on Bursa. All in all, the listing would offer investors up to a 25.5% stake in the company.
Acquisition of the aluminium extrusion press machines and equipment will increase the company's total annual capacity to 15,285 tonnes from 6,705 tonnes, Winstar said. The company will also set aside some of the proceeds as working capital, including for purchase of aluminium billets, its main raw material.
“By increasing our product offerings and expanding our production capacity further, we aim to capture a larger market share in the domestic aluminium extrusion and aluminium profiles markets going forward,” Chua said.
Sunview currently owns 30% of Winstar through its wholly owned subsidiary Vafe System Sdn Bhd. Winstar’s expansion into the provision of solar photovoltaic system installation services began with Vafe’s investment for a 20% stake back in April 2023.
Vafe then bought another 10% stake in Winstar from Mestron Holdings Bhd (KL:MESTRON) in February this year. Sunview's stake in Winstar will be trimmed to 24.15% after the IPO.
Under the IPO’s public issue, Winstar plans to offer 14.5 million new shares to the public and 15.95 million to eligible persons, and 26.1 million shares to select investors through private placement.
The offer for sale, meanwhile, will be done through private placement to select investors. Proceeds from the sale of existing shares will accrue entirely to a group of selling shareholders, including Chua and his father, vice chairman Chua Nyok Chong.
TA Securities is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.