Winstar Capital rises over 45% on ACE Market debut

Thursday 19 Dec 2024

(From left) Winstar Capital Bhd board of directors (BOD) member Ong Hang Ping, TA Securities Bhd corporate finance head Ku Mun Fong, Winstar Capital BOD member Charlie Chow Kian Hung, Winstar Capital executive director (ED) Lee Yong Zhi, Winstar Capital chairman Tengku Loreta Tengku Datuk Setia Ramli Al-Haj, Winstar Capital ED/CEO Vincent Chua Boon Hong, Winstar Capital vice chairman Chua Nyok Chong, Winstar Capital BOD members Datuk Mastura Mohd Yazid, Beh Oi Siew, Low Suet Ann and Datuk Kenny Low, and TA Securities dealing ED Datuk Hamzah Mohd Tahir at Winstar Capital’s ACE Market trading debut on Bursa Malaysia on Thursday. (Photo by Shahrin Yahya/The Edge)

KUALA LUMPUR (Dec 19): Aluminium products maker Winstar Capital Bhd (KL:WINSTAR) rose 45.7% on its ACE Market trading debut on Thursday.

Winstar opened 14 sen higher at 49 sen versus its initial public offering (IPO) price of 35 sen apiece. The stock jumped as high as 56.5 sen, before giving up some gains to settle at 51 sen at market close, giving the company a market capitalisation of RM148 million.

The fifth most actively traded stock of the day as well as the seventh biggest gainer, Winstar saw 82.36 million shares traded.

The IPO raised RM25.9 million — RM19.79 million for the company via the issuance of new shares, and RM6.09 million for its selling shareholders. The listing offered investors up to a 25.5% stake in the company.

Backed by renewable energy firm Sunview Group Bhd (KL:SUNVIEW), Winstar set aside 14.5 million shares for the Malaysian public under its IPO, which was oversubscribed by 80.17 times.

Winstar plains to use the proceeds it raised from the new share issuance mainly for expansion, including the purchase of new machinery and equipment.

“We plan to install four additional aluminium extrusion lines with a combined capacity of 8,580 tonnes per annum, which is expected to increase Winstar’s total manufacturing operating capacity from the current 6,705 tonnes per annum to 15,285 tonnes per annum,” said non-independent executive director and chief executive officer Vincent Chua Boon Hong in a statement.

“We target to install the first two new aluminium extrusion lines by the second quarter of 2025, with the remaining two new aluminium extrusion lines by the second quarter of 2026,” he added.

He further noted that this expansion will allow Winstar and its subsidiaries to supply more extruded aluminium products to a wide range of customers, including construction companies, property developers, aluminium product manufacturers, wholesalers, and solar PV (photovoltaic) engineering, procurement, construction, and commissioning EPCC (engineering, procurement, construction and commissioning) companies in Malaysia.

Post-IPO, Winstar executive vice chairman Chua Nyok Chong's shareholding will be reduced to 26.02% from 36.18%, after selling nearly nine million shares under the offer for sale, while Boon Hong's stake will be trimmed to 8.63% from 12%.

Winstar’s foray into solar PV system installation began in 2023, when it started to carry out the business of trading of solar-related materials and accessories, and the provision of solar PV system installation services.

That same year, renewable energy firm Sunview Group Bhd (KL:SUNVIEW), through its wholly owned subsidiary Vafe System Sdn Bhd, acquired a 20% stake in the company. Sunview then increased its stake to 30% in February 2024, after acquiring a 10% stake from Mestron Holdings Bhd (KL:MESTRON).

After the IPO, Sunview’s shareholding in Winstar will be diluted to 24.15%.

Winstar reported a net profit of RM3.31 million or 1.42 sen per share for the third quarter ended Sept 30, 2024 (3QFY2024). Revenue for 3QFY2024 totalled RM58.76 million.

There are no year-ago comparative figures as this is the company’s first interim financial report, in compliance with listing requirements.

TA Securities Holdings Bhd serves as the principal adviser, sponsor, sole placement agent, and sole underwriter for the IPO, while Eco Asia Capital Advisory Sdn Bhd acts as the financial adviser.

Edited ByIsabelle Francis

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