KUALA LUMPUR (Oct 9): Metal parts and furniture manufacturer Wintech Metal Bhd is planning a listing on the ACE Market to raise funds for working capital, to purchase machines and equipment, and to repay bank borrowings.

The proposed listing will offer up to a 27.5% stake in the company, according to its draft prospectus filed with Bursa Malaysia. This will involve the public issue of 132.49 million shares representing (20.38%), and an offer for sale of 46.26 million existing shares or (7.12%).

Wintech's largest shareholders are brothers Wong Kim Hwa and Wong Kim Loong, who hold 52.8% and 29.1% in the company, respectively. The third-largest shareholder is Loong Tuck Soon, with 9.7%.

All three will sell some of their interest in the company via the offer for sale. Post-listing, Kim Hwa's stake will drop to 42.07%, while Kim Loong's will fall to 21.03%. Loong will have 7.01%.

Along with the manufacturing of metal parts and furniture, the company also makes portable work pods. These account for over 99% of the company's annual revenue.

Based in Selangor, and with about 24 years of experience in the manufacturing of metal-based products, Wintech also exports its products, with the US being its largest overseas market. Its products have also come under the new US tariffs.

The group has been profitable for the last three years, though net profit has fallen from RM20.66 million in its financial year 2022 (FY2022) to RM11.71 million in FY2024, as margins dropped from 19.39% to 9.82%.

Public Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for Wintech's initial public offering.