KUALA LUMPUR (Aug 28): Winstar Capital Bhd (KL:WINSTAR) has proposed a special Bumiputera share issue of up to 41.45 million new shares to investors approved by the Ministry of Investment, Trade and Industry (Miti), to comply with the Bumiputera equity requirement.
The special issue of 41.45 million shares represents 12.5% of its enlarged issue share capital. The issue price will be determined at a later date, said the aluminium products manufacturer in a bourse filing.
Winstar is required to allocate 12.5% of its enlarged number of issued shares to Bumiputera investors approved or recognised by Miti within five years after being listed on the ACE Market of Bursa Securities or one year after achieving the profit requirement for seeking listing on the Main Market of Bursa Securities.
Winstar posted an annual earnings of RM7.4 million in the financial year ended Dec 31, 2024 (FY2024) — which the company claimed have met the profit requirement for listing on the Main Market of Bursa Securities.
“Hence, the company has until Dec 31, 2025 to comply with the Bumiputera equity requirement,” it said.
For illustrative purposes, assuming the placement shares were issued at 58 sen each, Winstar stands to raise RM24.04 million from the exercise. The proceeds will mainly be used to fund working capital purposes, including the purchase of aluminium billets — the main raw materials used for its aluminium extrusion segment.
The purchase of aluminium billets amounted for RM64.58 million for FY2024, up from RM52.05 million in FY2023 and RM41.36 million in FY2022, it said.
The proposed special issue is expected to be completed by end-December 2025.
TA Securities has been appointed as the principal adviser and sole placement agent for the proposed special issue.
Winstar was listed on Bursa Securities on Dec 19, 2024. Its initial public offering was priced at 35 sen per share, which successfully raised gross proceeds of RM19.79 million from its public issue.
Sunview Group Bhd (KL:SUNVIEW) is its largest shareholder, with 24.15% stake.
Winstar’s share price closed up 1.5 sen or 2.59% to 59.5 sen on Thursday, giving the group a market capitalisation of RM173 million.