KUALA LUMPUR (Nov 12): Winstar Capital Bhd, which manufactures aluminium products, signed an agreement with TA Securities Holdings Bhd to underwrite its initial public offering (IPO) on the ACE Market.
Under the agreement, TA Securities will underwrite 30.45 million new shares allocated to the Malaysian public and eligible persons, Winstar said in a statement. The company, backed by listed renewable energy firm Sunview Group Bhd (KL:SUNVIEW), is preparing to list by the end of 2024.
Aside from being its sole underwriter, TA Securities is also the principal adviser, sponsor, and sole placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.
The agreement “not only reinforces their confidence in us, but also takes us a step closer to our IPO”, said Winstar chief executive officer Vincent Chua. “We are ready to take advantage of the opportunities in Malaysia’s renewable energy, construction and property development industry.”
Winstar mainly manufactures aluminium profiles and ladders, which make up 57% of its revenue, and the company is also involved in trading and distribution of building materials.
The Selangor-based 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. All in all, the listing would offer investors up to a 25.5% stake in the company.
The company plans to acquire extrusion press machines and equipment, which will more than double its annual capacity to 15,285 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.
Winstar, which began fabricating aluminium mounting structures for the installation of solar panels early this year, is also banking on the multiple solar projects under the National Energy Transition Roadmap to create demand for its products, Chua added.
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.